Daishin Securities has maintained its buy recommendation on Young One Trading (KRX: 111770) while trimming its target price by 11%, from 140,000 won to 125,000 won, according to a report published on 6 October 2026. Based on the closing price of 66,800 won on 2 October, the revised target implies upside of roughly 87%.

The brokerage cited a weaker won-dollar exchange rate as the principal reason for the adjustment, leading it to revise down its 2026–27 earnings forecasts. Its 2026 revenue estimate fell 2.3% to 4.444trn won from 4.548trn won, whilst its operating-profit estimate was trimmed 2.4% to 612bn won from 628bn won. The net profit attributable to controlling shareholders was cut by a steeper 4.6%, to 571bn won from 598bn won.

Despite these revisions, the report argues that the won's depreciation has largely run its course and that the probability of further downward estimate revisions is low. For the third quarter (July–September), Daishin projects revenue of 1.303trn won, up 8.1% year on year, and operating profit of 197.8bn won, up 9.2%. Within its OEM division, dollar-denominated growth is expected to come in at around 7%, translating to approximately 9% in won terms.

A structural winner in outdoor apparel

Young One Trading's OEM division manufactures high-performance woven garments for outdoor and sports brands, and has established itself as one of the world's top-tier suppliers in this niche. That standing has allowed it to absorb rising order volumes as the structural growth of the outdoor and activewear market continues to generate new business. In 2025, OEM revenue reached 2.723trn won, up 15% year on year, while operating profit rose 16% to 600bn won.

Scott: from drag to potential catalyst

The company's bicycle subsidiary Scott — a Swiss brand with a global following — has weighed heavily on group results after accumulating excess inventory in the aftermath of the pandemic-era cycling boom. Scott's operating loss reached 101bn won in 2025. However, the division appears to be turning a corner: by end of the second quarter of 2026, Scott's inventory had fallen 18% year on year (or 30% when measured in Swiss francs). Daishin expects Scott's operating loss to narrow sharply to 12bn won in the third quarter, compared with a loss of 20bn won in the same period a year earlier, and forecasts a return to profitability of 35bn won in 2027.

Dividend yield poised to double

Perhaps the most striking near-term development highlighted in the report is a planned increase in Young One's dividend payout ratio, from 25% to 30%, covering 2026 and 2027. Assuming dividends per share of 3,500–4,000 won for 2026, Daishin calculates a prospective dividend yield of 5.2–6.0% at the current share price — more than double the 2.6% yield delivered in 2025. The brokerage believes this enhanced yield could act as a positive catalyst for the share price as the dividend season approaches.

Risks worth watching

Investors should nonetheless weigh several risks. Because Young One's revenues are earned predominantly in US dollars and Swiss francs before being translated into won, any renewed weakness in the won-dollar rate could force another round of estimate cuts. The share price has already fallen 10.0% over the past month and 17.2% over six months, underperforming the KOSPI — South Korea's main equity index — by 15.6 and 38.1 percentage points respectively over those periods.

It also remains to be seen whether the reduction in Scott's inventories will translate smoothly into improved profitability. The global bicycle market has been digesting a post-pandemic demand hangover, and a broader slowdown in the European economy could delay any recovery in new-model sales beyond current expectations. Even if Scott returns to profit in 2027 as forecast, the OEM division will continue to carry the weight of the subsidiary's losses in the interim.

Valuation

On valuation metrics, the investment case looks compelling. Young One trades on a 2026 price-to-earnings ratio of just 5.2 times and a price-to-book ratio of 0.7 times — both below the average for South Korean textile and apparel peers. Its EV/EBITDA stands at a mere 2.6 times. Return on equity is projected to improve from 13.3% in 2026 to 13.9% in 2027.

Foreign investors hold a 29.20% stake in the company. The controlling shareholder, Young One Holdings, together with nine related parties, owns 50.75%, while the National Pension Service of Korea holds 10.57%. The stock's 52-week range runs from 57,300 won to 98,000 won, placing the current price uncomfortably close to its annual trough.