[Click eStock] "Baeksan, Record-Breaking Q1 Earnings Expected"

On the 9th, Kiwoom Securities analyzed that Baeksan likely recorded record-breaking performance in the first quarter of this year.

Oh Hyunjin, a researcher at Kiwoom Securities, stated in a report on the same day, "Baeksan's first-quarter results are expected to show sales of 134.3 billion KRW and operating profit of 18 billion KRW, representing increases of 26% and 51% respectively compared to the same period last year." He explained, "Baeksan's market share expanded as the supply chain restructuring of its main sports shoe client continued, and another major client increased supply volume as inventory adjustments were completed."

Researcher Oh Hyunjin added, "Baeksan's full-year performance is projected to reach sales of 508.5 billion KRW and operating profit of 64.2 billion KRW, up 22% and 21% respectively year-on-year." He analyzed, "Adidas is expected to see a full-scale demand recovery through new products in the first half of the year, and Nike is also anticipated to expand demand in the second half through gradual performance improvements."

He also stated, "Baeksan holds a leading position in the synthetic leather market recently by steadily increasing its client share through higher quality and delivery stability compared to competitors." He added, "The expansion of the Indonesian factory is scheduled to be completed by the end of this year, which could enable additional order increases by strengthening client responses."

He predicted, "The increase in models adopting automotive interior materials will also become full-scale from next year onward." He expected, "Sales of automotive interior materials are anticipated to exceed 100 billion KRW next year, and efforts to expand clients among global automobile manufacturers are expected to continue."

Furthermore, he said, "In March, a decision was made to repurchase and retire 515,000 common shares." He forecasted, "Considering the expected record-high annual profits and still low valuation, an active shareholder return policy is likely to continue."