Daishin Securities analyzed on the 13th that DK&D is preparing a vegan leather business derived from plant-based materials and has sufficient growth potential to reach about 10% of the entire leather market.
Park Jang-wook, a researcher at Daishin Securities, stated in a report on the same day, "DK&D is engaged in synthetic leather, hats, and nonwoven fabric businesses," and "with the completion of the rehabilitation process and the turnaround to profitability of Dada C&C, which operates the hat business, sales and operating profit growth will be driven."
Researcher Park Jang-wook said, "If the basic sales volume of the hat sector is maintained, it is expected that a trend of improved profit margins will appear due to the increased sales proportion of high operating margin branded hats."
He also explained, "The main import country for the key businesses of hats and shoes is the United States, and the proportion of imports from China to the major consumer country, the U.S., decreased from 68% in 2010 to 48% last year," adding, "Vietnam and Bangladesh are replacing the portion reduced from China."
This is analyzed as a representative labor-intensive business that is expected to continuously benefit not only from de-Chinaization but also from rising labor costs in China.
Furthermore, he said, "DK&D is preparing to operate a vegan leather business derived from plant-based materials," and "prototype delivery to global luxury brand companies is expected in the second half of this year, and according to Business Insider, the vegan leather market accounts for about 10% of the entire leather market, indicating sufficient growth potential."
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