[Click eStock] "SJ Group, Expected Sales Growth of Helen Kaminski and Kangol"

NH Investment & Securities Report

[Asia Economy Reporter Minji Lee] SJ Group is expected to continue its performance growth next year due to increased sales of its main brands.

According to NH Investment & Securities on the 23rd, SJ Group is expected to record an operating profit of 17.4 billion KRW this year, a 6.2% increase compared to the same period last year. Sales are estimated to have decreased by 4.3% from the previous year to 104.8 billion KRW.

Helen Kaminski, a luxury lifestyle premium brand, is estimated to have grown compared to the previous year despite the COVID-19 pandemic this year, as clothing sales and online channel sales increased. Kangol Kids, launched in 2018, also benefited from store expansion, with sales expected to reach 14.3 billion KRW this year, a 55.4% growth compared to the same period last year.

Researcher Junki Baek of NH Investment & Securities explained, “The company appears to have secured brands that can respond to trends due to the continuous boom in the luxury market and the expansion of the kids market after COVID-19,” adding, “The online sales ratio rose to 35%, minimizing the impact of COVID-19 this year.”

The growth of Kangol Kids and Helen Kaminski is expected to continue next year. Sales of the existing main brand Kangol are expected to recover to last year’s level. Sales by brand are projected to grow by 68%, 18%, and 15% compared to this year, with Kangol Kids at 24.1 billion KRW, Helen Kaminski at 27.4 billion KRW, and Kangol at 77.3 billion KRW, respectively. Researcher Baek stated, “The short-term contribution of the ongoing LCDC brand business to performance is limited, but its value as a mid- to long-term growth momentum is sufficient,” and added, “Considering the potential for expansion in China is still open, a positive approach at the current stock price is valid.”