[Asia Economy Reporter Hyunseok Yoo] Yuanta Securities analyzed on the 17th that Samchully Bicycle's performance will further improve in the second quarter due to entering the peak season. No investment opinion or target price was provided.
Samchully Bicycle recorded sales of 44 billion KRW and operating profit of 9.5 billion KRW in the first quarter. This represents increases of 83.3% and 519.0%, respectively, compared to the same period last year. An Juwon, a researcher at Yuanta Securities, said, "Growth was achieved across all brands, from LESPO to CELLO and PHANTOM, and the operating profit margin also exceeded 20%."
Second-quarter performance is expected to improve further due to the peak season. Demand for electric bicycles and high-spec bicycles is increasing due to the emphasis on eco-friendly mobility, and overall leisure activities are rising, leading to continued growth in bicycle sales across all brands. Additionally, with supply shortages of imported brand bicycles, the demand for domestic brands continues to rise, so An believes the bicycle shortage phenomenon will persist for the time being.
Yuanta Securities forecasts that Samchully Bicycle's sales and operating profit for this year will increase by 35.9% and 190.1%, respectively, to 164.2 billion KRW and 31.9 billion KRW compared to the previous year. He emphasized, "The reason why Samchully Bicycle's annual record performance is expected is due to the structural improvement effects from restructuring and business reorganization implemented since 2018, and the increase in bicycle sales across all brands due to a favorable business environment. Since the high growth of the domestic bicycle market is expected to continue at least until 2022, it is a time to fully enjoy Samchully Bicycle's performance momentum."
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