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Youngone Benefits from Surge in Arc'teryx Orders

On May 19, Mirae Asset Securities maintained its "Buy" investment rating on Youngone Corporation and raised its target price from 115,000 won to 130,000 won.

Baesongyi, an analyst at Mirae Asset Securities, stated, "Although it is difficult to be optimistic about the OEM industry outlook, Youngone is delivering differentiated results given the competitiveness of its client companies."

In the first quarter of this year, Youngone Corporation recorded revenue of 895.8 billion won and operating profit of 120.4 billion won, exceeding market expectations. These figures represent year-on-year increases of 10% and 46%, respectively. Analyst Bae explained that a surge in Arc'teryx orders drove overall order growth, while losses at Scott were significantly reduced. He added, "Arc'teryx became the number one buyer this quarter, with its sales share surpassing double digits." In fact, Arc'teryx order volume increased by 68% year-on-year, contributing to a 9% growth in dollar-denominated orders.

The increase in Arc'teryx orders is expected to continue for the time being. Analyst Bae explained, "Arc'teryx is targeting 18–20% growth this year, the highest within the Amer Sports Group," and added, "As the brand's business remains robust, orders are increasingly concentrated at Youngone, its key vendor." He projected that dollar-denominated orders in the second quarter will also grow by 10% year-on-year, and that the company will continue to maintain an operating margin of over 20%.

This content was produced with the assistance of AI translation services.