[Click eStock] Youngone Corporation Eases 'Scott' Inventory Burden... Target Price Raised

On July 17, DB Securities raised its target price for Youngone Corporation to 80,000 won. This adjustment was made as the excess inventory burden of the bicycle brand Scott has been resolved.

DB Securities projected that Youngone Corporation's consolidated operating profit for the second quarter would reach 166.4 billion won, which is in line with the market consensus of 162 billion won.

Specifically, the Original Equipment Manufacturing (OEM) division is expected to see dollar-denominated sales rise by 11% year-on-year, with an estimated operating margin of 29%.

Although Scott is expected to record an operating loss of 30 billion won, the company noted that aggressive discount sales of electric bicycles are facilitating smooth inventory clearance.

Heo Jena, a researcher at DB Securities, stated, "Until last year, the main factor holding back Youngone Corporation's stock price was the excess inventory issue at Scott. As a result of actively clearing the accumulated inventory over approximately one year, the losses in this business division are expected to shrink rapidly toward the second half of 2025."

She added, "Due to export tariffs imposed by buyers, there is persistent pressure to lower production costs. The company plans to focus on defending its margins by expanding volume, leveraging its high production share among major buyers. As Youngone Corporation is expected to enter a phase of significant profit growth from the second half of the year, we recommend increasing the stock's weighting."