[Click e-Stock] "Youngone Enters Phase of Operating Profit Growth... Target Price Raised"

On November 17, Daishin Securities raised its target price for Youngone Corporation to 100,000 won, a 25% increase from the previous figure. This decision comes after the company posted a surprise performance in the third quarter, and is expected to see a significant improvement in its fourth-quarter results as well.

Yoo Junghyun, a researcher at Daishin Securities, explained, "The upward revision of the target price reflects the adjustment of the company’s 2026-2027 earnings forecasts, as Youngone has delivered outstanding results and improved margins despite the impact of tariffs."

In the third quarter, Youngone Corporation recorded sales of 1.2047 trillion won and operating profit of 181.2 billion won, representing increases of 13% and 73%, respectively, compared to the same period last year. These figures significantly exceeded market consensus. The improvement was attributed to higher margins in the OEM division and reduced losses at the bicycle brand Scott.

Researcher Yoo projected, "Fourth-quarter results are also expected to improve significantly."

He added, "Considering the high exchange rate environment in the fourth quarter, the trend of sales and profit improvement is likely to be on par with the third quarter. In particular, unlike the large-scale loss recorded by Scott in the fourth quarter of last year, the loss in the fourth quarter of this year is expected to decrease even further compared to the third quarter, which means the company is entering a phase of substantial operating profit growth for the time being."

Yoo further stated, "The third-quarter results once again proved that the company’s competitiveness in the global functional apparel manufacturing sector is at the highest level," adding, "This competitiveness will be reflected in the resolution of the company’s undervaluation."

This content was produced with the assistance of AI translation services.