The stock price of Emotion Corporation, a fast-growing company led by its brand Snow Peak, which has been called the “Chanel of camping,” is soaring. While the domestic camping market is growing steadily, the company’s largest shareholder has increased its stake by buying shares, and the company’s affiliated departments have moved up a notch from a mid-cap to a blue-chip company. For the time being, things are looking good for the company토토사이트.
From the beginning of this year to the 7th of this month, Emotion Corporation’s stock price surged 110%. The stock price, which was around 1,800 won at the end of last year, is now over 4,000 won. Recently, the company’s performance has been clearly improving. After posting a loss of 5.1 billion won in 2020, the company posted an operating profit of over 16.2 billion won last year. This year’s operating profit is expected to be even higher. Shinhan Investment & Securities and Daeshin Securities predicted that the company’s operating profit will reach 26.5 billion won to 27 billion won this year.
Snowpeak Granberg L./Snowpeak homepage image by Galmuri
According to the Korea Trade Statistics Institute, there were about 7 million campers in Korea as of 2021, up 1 million from 2019, two years earlier. The number of campers has increased significantly since the coronavirus pandemic. As a result, the domestic camping market has grown from KRW 1.5 trillion in 2016 to KRW 4 trillion today.
In an environment where the camping market is growing rapidly, Emotion Corporation has stabilized its luxury brand Snow Peak in Korea. Snow Peak is a Japanese luxury camping brand, and in 2019, after securing the domestic license for Snow Peak, Emotion Corporation launched Snow Peak Apparel to manufacture and distribute miscellaneous goods such as clothing, shoes, and supplies. Offline, the company operates 140 stores, including Lotte, Shinsegae, and Hyundai department stores, outlets, and direct stores, and online, it has four sales outlets, including its own mall.
Snow Peak’s tents cost more than 1 million won, but when limited edition products are released, they sell out in minutes. You can expect to wait six months to a year or more for popular products. Recently, Ryu Seung-bum’s camping fashion has attracted the attention of young people. It is known as the “Hermes of camping” and “Chanel of camping” among consumers.
“Snow Peak is a premium brand that every camper wants to own and has a high level of loyalty,” said Kim Soo-hyun, a researcher at DS Investment & Securities. “There are no marketing events other than offline events once or twice a year, but the supply is low compared to demand, so they are using strategies to stimulate purchasing appetite.”
The recent increase in the shareholding of the largest shareholder is also a positive sign for investors. Kim Ho-ho, CEO of Emotion Corporation, has bought more than 450,000 shares of the company’s stock on the market nine times since March. Recently, she further increased her stake by exercising call options (stock purchase rights) on previously issued convertible bonds (CBs). Normally, the largest shareholders buy at the bottom of the market when the stock price falls, but Kim’s decision to increase his stake in Emotion Corporation while the company’s stock price is surging has attracted investors’ attention.
In February last year, Emotion Corporation issued a CB worth 6 billion won to Truston Asset Management to secure operating funds. At the time of the CB issue, Mr. Kim’s stake was 25.05%, which has now risen to 29.72% (26.86 million 2934 shares).
The company’s steady growth has also led to a change in its affiliation with the Korea Exchange. The KOSDAQ market headquarters announced that it will change the division of Senso Corporation from the mid-cap to the blue-chip division as of the second of last month.
The Korea Exchange categorizes KOSDAQ-listed companies into four divisions based on their size, financial status, and management performance: the blue chip division, venture division, mid-sized division, and new growth division. To be eligible for the blue-chip category, a company must meet all three conditions, such as having an equity capital of at least 70 billion won or a market capitalization averaging at least 100 billion won over the last six months, no capital erosion, return on equity (ROE) averaging at least 3 percent over the last three years, net profit averaging at least 3 billion won, and sales averaging at least 50 billion won over the last three years.
Securities experts expect Emotion Corporation’s growth trend to continue in the future. “Emotion Corporation is a fashion brand to watch this year, and there is no more attractive growth stock in the mid- to long-term given its overseas growth opportunities,” said Park Hyun-jin, a researcher at Shinhan Investment & Securities.
“As the outdoor sector, which was focused on mountaineering, has expanded to include camping and hiking, styles emphasizing fashionability based on camping sensibility are emerging, with 20-40 year olds as the core target,” said Lee Sang-heon, a researcher at HI Investment & Securities. “The third-generation outdoor market is opening up with camping sensibility and gofcore, and Snow Peak is expected to benefit.” Gorpcore is a combination of gorp, which means nuts eaten during outdoor activities, and normcore, which means fashion that is natural, comfortable, and stylish, so the gorpcore look means styling that mixes and matches outdoor looks with everyday wear.
Exports are also expected. In addition to domestic sales, Emotion Corporation has secured licenses for Greater China, Taiwan, and Hong Kong. “The camping market in China is still in its flowering stage, but explosive growth is expected, especially since women are more likely to purchase camping equipment than men, which can lead to higher demand for higher-priced products,” said Kim.