[Click eStock] "GamSeong Corporation, Anticipating China Expansion in Second Half"

On the 7th, KB Securities analyzed that attention should be paid to the possibility of multiple re-rating due to Gamseong Corporation's expansion into China in the second half of the year.

Han Jeyoon, a researcher at KB Securities, stated in a report on the same day, "Gamseong Corporation's Q2 performance this year is expected to show sales of 40.3 billion KRW and operating profit of 6.1 billion KRW, representing increases of 350% and 79% respectively compared to the same period last year," adding, "It has been confirmed that the high growth trend due to securing brand power in Q1 continues, and this growth trend is likely to continue into Q2."

He also explained that since the number of stores is increasing quarterly, continuous growth due to store expansion can be expected. Researcher Han said, "In Q3, several performance momentum factors exist, such as the largest store expansion around September when the peak season begins, expansion into China following Taiwan, and the effect of changing the model from Ryu Seung-beom to Hyun Bin, so the growth trend from the first half is expected to continue," and forecasted, "The annual performance this year is expected to be sales of 196.2 billion KRW and operating profit of 31.7 billion KRW, representing increases of 67% and 93% compared to the same period last year."

He predicted that Gamseong Corporation's growth trend will continue this year and that there may be changes in growth potential in 2024 depending on the results in the second half of the year. In particular, there is significant anticipation regarding the China expansion that has been prepared since the beginning of the year.

The researcher said, "There is a differentiated marketing point in that they can actively utilize the brand power of the high-end camping brand ‘Snow Peak’," and analyzed, "Since this year is the first year of expansion into China, the contribution of overseas sales to the company's overall performance will be low, but attention should be paid to the possibility of additional upward revision of the multiple assigned by the stock market."

He also said, "Although market interest is focused on overseas expansion, attention should also be paid to domestic business," explaining, "Snow Peak Apparel has grown rapidly focusing on lightweight and mid-weight padding, but there has been a regret due to the absence of a heavy outerwear lineup, which is the pinnacle of padding."

He continued, "However, this year marks the beginning of significant changes in business such as overseas expansion and main model replacement," and forecasted, "It seems to be an appropriate time to add a heavy outerwear lineup, and if the product lineup is actually expanded, the resulting growth potential will be highlighted."