IBK Investment Securities initiated coverage of Gamsung Corporation (KOSPI: 036620) on the 7th with a buy recommendation and a target price of ₩5,600, implying upside of 33.3% from the current share price of ₩4,200.
Analyst Yoo Chang-keun highlighted that BIEMLOFEN, Gamsung's Chinese distribution partner, has secured the rights to sell all intellectual property associated with the Snow Peak brand in China — including apparel and camping equipment. Gamsung handles the distribution of Snow Peak clothing within the Chinese market.
The analyst projects overseas export revenues will reach ₩20.9bn in 2026, a rise of 167.6% year on year. The number of retail outlets in China is expected to grow to 15 by end-2026, up by 14 stores from the prior year. By end-2027, that figure is forecast to reach 40, with export revenues climbing to ₩54bn.
Given the structure of the export contracts — which carry minimal selling, general and administrative expenses once brand royalties are stripped out — operating margins on the export business are expected to exceed 30%.
For the full year 2026, IBK forecasts group revenues of ₩293.7bn (up 17.4% year on year), operating profit of ₩54.4bn (up 21.8%), and an operating margin of 18.5%.
In the domestic market, Snow Peak Apparel holds a 5.8% share — compared with the roughly 10% that established Korean outdoor brands typically achieve at maturity — suggesting more than 50% of its growth potential in South Korea remains untapped.
The target price was derived using a sum-of-the-parts (SOTP) methodology, applying a price-to-earnings multiple of 8.4 times to the domestic business and 15.0 times to the international operations. IBK argues that the company's current market capitalisation of ₩377.4bn ascribes virtually no value to the China business.