[Click eStock] "Beullak Yak I&C, High Sales Growth Expected Again This Year"

NH Investment & Securities stated on the 27th that Blackyak I&C is an "oligopolistic player in the industrial safety market" and that "with a strategy to expand product numbers using the brand, sales are expected to grow by more than 10% again this year."

On the same day, Jun-ki Baek, a researcher at NH Investment & Securities, said, "Blackyak I&C has established a stable supply chain, controlling the cost of goods sold ratio below 60%."

Researcher Baek particularly focused on the growth potential of safety shoes sales. Currently, the domestic safety shoe market is dominated by three companies: K2 Safety, Blackyak I&C, and Ziben. Researcher Baek said, "The domestic industrial safety market is approximately 1 trillion KRW in size, with the premium market estimated to account for about 25%. Due to the strengthening of the Serious Accident Punishment Act, demand for premium safety equipment such as safety shoes is expected to increase," adding, "work shoes have a replacement cycle of only 3 to 6 months, which means there is significant replacement demand. Steady sales growth and stable profits are expected."

In the traditional business sector, changes are being pursued through technology integration. New products such as safety equipment with GPS (Global Positioning System) and digital twin-based disaster solutions are being launched continuously. Digital twin refers to technology that replicates the structure of real objects or systems identically in a virtual world. Researcher Baek said, "in cooperation with Clobot, a smart logistics center will also be established, which is expected to reduce operating costs and increase efficiency," adding, "they have started supplying to Traders and Costco. Licensing negotiations with Japan's Workman and new premium workwear businesses are also anticipated," he emphasized.

Maximizing shareholder value amid solid profitability is another positive factor. Researcher Baek said, "an operating profit margin exceeding 20% will continue," and "as of the end of last year, cash holdings amounted to 25 billion KRW, and considering the sound financial structure, an active shareholder return policy is expected." Last year's performance is estimated at sales of 37.7 billion KRW and operating profit of 8.6 billion KRW, each growing by 7.0% compared to the previous year. This year, sales are projected to reach 43 billion KRW and operating profit 10.4 billion KRW.