[Click eStock] "Baeksan, Expanding Market Share within Nike"

Hana Securities analyzed on the 16th that Baeksan is expected to experience structural growth based on the expansion of internal market share with Nike and the potential in automotive interior materials.

Kim Doohyun, a researcher at Hana Securities, stated in a report on the same day, “Nike, Baeksan’s main client, has been expanding its domestic supply volume through supply chain restructuring since last year,” and “due to this structural demand change from the front-end client, the company is expected to become the number one in internal market share for synthetic leather in Nike this year.”

Nike, a major client, is expected to present aggressive forecasts again from the second half of this year when the effects of the full-scale interest rate cuts are reflected in the macroeconomy. Therefore, the benefit to Baeksan from the expansion of internal market share is expected to be strong.

Additionally, he mentioned that Baeksan’s automotive interior materials division is also expected to make a full-scale global entry.

He said, “Currently, synthetic leather is supplied to about 30 models of the Hyundai Motor Group, and based on this, discussions with global automobile manufacturers are ongoing,” adding, “As a result, since April last year, Baeksan’s synthetic leather has been installed in small quantities in some models of the global automobile group S, and when the number of installed models expands in earnest, annual sales from the automotive interior materials division alone are expected to exceed approximately 200 billion KRW.”

He continued, “Baeksan is expected to record annual sales of 500.7 billion KRW and operating profit of 61.3 billion KRW this year, representing increases of 19.3% and 18.5%, respectively,” and added, “This year marks the first year of Baeksan’s structural growth, and it is a time to pay attention as mid- to long-term growth potential is expected.”