[Click e-Stock] "Gamsung Corporation Expected to Achieve Over 20 Billion Won in Initial Sales in China"

On March 11, DS Investment & Securities raised its target price for Gamsung Corporation to 7,500 won, reflecting initial sales prospects in China. The investment opinion was set to 'Buy'.

원본보기 아이콘

Suhyun Kim, a research analyst at DS Investment & Securities, stated in a report released on the same day, "The first store in Taikoo Li is expected to generate annual sales of more than 3 billion won. For reference, Kolon Sports’ premium flagship locations currently generate more than 10 billion won annually. As Gamsung Corporation is still in the early stages in terms of brand awareness, it is projected to take about four to five years to reach a similar level."

Gamsung Corporation currently holds a 10-year license agreement for its business in China, with operations managed by Binlefun. The company is expected to open around 30 stores this year, with sequential openings scheduled for mid-April and late April. Entry formats include luxury stores on the first floor of leading department stores in Tier 1 cities or premium shopping malls such as Wanxiangcheng. Each store is expected to be either a stand-alone space of approximately 330 square meters or a duplex occupying the first and second floors.

Kim highlighted, "The key investment points are improved profitability through fixed cost leverage and expanded exports, domestic apparel growth of over 20 percent, and proactive shareholder returns through dividends and active share buybacks and cancellations."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.