DB Securities said on the 27th that for Youngone, order volumes are increasing and profit growth is expected. The firm kept its "Buy" rating and raised its target price to 120,000 won from 110,000 won. Youngone's previous day's closing price was 93,000 won.
Youngone is a company that manufactures and exports outdoor apparel and sneakers on an OEM (original equipment manufacturer) basis, and distributes "The North Face" in Korea.
In the fourth quarter of last year, Youngone's revenue on a consolidation basis rose 19.2% from a year earlier to 1.0093 trillion won, and operating profit was 105.2 billion won.
Researcher Heo Jena at DB Securities said, "We estimate OEM dollar sales increased 18% from a year earlier," and noted, "Following the third quarter, the top five customers continued a solid upward trend in demand."
Youngone's growth is expected to continue this year.
Heo said, "Key customers 'The North Face,' 'Patagonia,' 'Engelbert Strauss,' 'Lululemon,' and 'Arc'teryx' are still increasing orders by double digits," and analyzed, "In particular, since last year, the sales share of 'Arc'teryx' has been in the mid-10% range, establishing it as a stable top-five customer, which is a positive."