Leading Investment Securities "Preparing to Enter Greater China"
"Expecting Sales Growth"
[Asia Economy Reporter Lee Jung-yoon] Leading Investment Securities stated on the 2nd that Gamseong Corporation is expected to rapidly expand in China and other markets based on its existing premium camping goods recognition.
Snow Peak has been preparing to enter the Greater China region, including China, Taiwan, and Hong Kong, in earnest since the second half of last year. In the case of Taiwan, entry is expected to be possible from the first half of this year. It officially holds the market license for Snow Peak apparel in South Korea, China, Hong Kong, and Taiwan. Snow Peak is evaluated to have established a premium camping goods brand image in the Greater China region.
In South Korea, growth of at least 50% compared to the previous year is expected this year as well. The distribution channels, which numbered 110 in 2020, increased to about 140 by the end of last year. This year, it is expected to increase to 150.
Sales per store also rapidly grew from about 10 million KRW in 2020 to about 60 million KRW by the end of last year, resulting in simultaneous increases in both the number of stores and sales per store.
Researcher Yoo Seong-man of Leading Investment Securities explained, "Despite concerns about a decline in fourth-quarter sales, the peak season, due to milder weather compared to previous years in the fourth quarter of last year, it is expected to record excellent quarterly sales of about 47 billion KRW. This year, simultaneous growth in the number of stores and sales per store, as well as expansion of the adult apparel lineup and the kids lineup, are expected to result in at least a 50% increase in sales compared to the previous year."
Gamseong Corporation's estimated sales for last year are 117.6 billion KRW, an increase of 140.3% compared to the previous year, and operating profit is expected to increase by 1218.8% to 15.3 billion KRW. This year, sales are expected to increase by 53.2% to 180.2 billion KRW, and operating profit is expected to rise by 81.0% to 27.7 billion KRW, as Snow Peak's scale expansion and economies of scale lead to profitability improvements.
Researcher Yoo added, "These figures do not yet include profit estimates for the Greater China region, and it is also positive that mobile device peripherals contribute stable performance with annual sales of about 15 billion KRW and operating profit of about 1 to 1.5 billion KRW."
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