[Click eStock] "Gamseong Copor, Q4 Core Product Performance Expected to Accelerate"

On the 30th, iM Securities forecasted that Gamseong Corporation's performance improvement will accelerate in the fourth quarter as sales of its main products, such as lightweight padding and heavy outerwear, increase with the colder weather. No investment opinion or target price was provided.

Gamseong Corporation operates in the apparel and mobile businesses. In the apparel division, since signing a licensing agreement with Snow Peak in 2019, it has been developing the lifestyle outdoor brand Snow Peak Apparel, manufacturing and selling clothing, footwear, and fashion accessories.

In the mobile division, the company has developed its own brand, Actimon, manufacturing and selling phone auxiliary batteries, chargers, and other smartphone accessories. As of the first half of this year, the sales composition by business segment is 93.4% apparel and 6.6% mobile.

Especially in the apparel division, based on Snow Peak's brand awareness and camping sentiment, sales in the Snow Apparel clothing segment have accelerated, recording 5.5 billion KRW in 2020, 35.8 billion KRW in 2021, 97.1 billion KRW in 2022, and 160.5 billion KRW in 2023.

Researcher Sangheon Lee of iM Securities said, "This year, sales are also expected to increase by more than 30% compared to the previous year," adding, "As offline distribution channels increase, the foundation for sales growth will be established year by year." He continued, "Above all, the fourth quarter, when the weather gets colder, is the peak season because sales of relatively higher-priced products increase compared to other quarters," and predicted, "With the effect of TV commercials featuring actor Hyun Bin, sales of main products such as lightweight padding and heavy outerwear will increase, leading to performance improvement."

Meanwhile, Gamseong Corporation announced in April that it will use more than 50% of net income within the range of distributable profits based on the 2024?2026 fiscal years for shareholder returns. Researcher Lee expected, "Assuming the total net income for the next three years is 140 billion KRW, about 70 billion KRW will be used for share repurchases and cancellations as well as dividends."