[Featured Stock] Alton Sports Hits Upper Limit on New Electric Bicycle Used Battery Business Expectations

[Asia Economy Reporter Ji Yeon-jin] Alton Sports soared to the upper limit on the 12th amid expectations of entering the new business of electric bicycle waste batteries.

Alton Sports was trading at 4,205 won, up 29.98% from the previous day, starting from 9:15 a.m. on the same day.

Earlier, Lee Chung-heon, an independent research analyst at Value Finder, said, "Interest is rising in Alton Sports' new business of electric bicycle waste batteries, based on its number one market share in the domestic electric bicycle market," and predicted, "They will carry out a business of reusing waste batteries and disassembling and reselling them."

Alton Sports is the number one domestic electric bicycle company and was listed on the KOSDAQ market in July 2010. Since January 2019, it has started an electric bicycle sharing service with 'Kakao Mobility,' and plans to supply more than 10,000 electric bicycles this year, starting with 500 units in 2019.

Kakao Mobility increased its service areas from 10 last year to 18 this year due to rising demand. Also, Alton Sports turned a profit for the first time in six years by supplying 14,000 'Ddareungi' shared bicycles to Seoul City in 2020.

The analyst said, "With the entry into the shared bicycle market, the sales proportion of electric bicycles and smart mobility has expanded," and "Recently, with the lifting of 'social distancing,' outdoor activities have increased, and due to sustained high oil prices, bicycle purchases and usage are rising, creating a positive business environment for the company."

He added, "Alton Sports has so far disposed of waste batteries in the scrap market, but it is understood that they will proceed with a business of improving the efficiency of waste batteries for reuse and disassembling and reselling them in the future," and "The domestic electric bicycle market has been expanding structurally since 2019 with the participation of Kakao Mobility and others. Electric bicycle batteries are rechargeable and replaceable, requiring one to two batteries per bicycle, with an average lifespan of about three years."

Meanwhile, Samchully Bicycle was trading at 7,610 won as of 10 a.m. on the same day, up 18.14% from the previous day.