Samchuly Bicycle Jumps 43% in Three Days After Delisting Risk Is Lifted

Source

Korea Economic Daily

Summary

Samchuly Bicycle said its shares surged 43.2%% over three days after its delisting risk was cleared and trading resumed.
The company said its earnings and revenue are recovering after swinging from an operating loss to a 3 billion won operating profit, followed by 12.4 billion won in operating profit last year.
A sharp rise in global oil prices and stronger electric bicycle demand supported the stock, with the launch of its Phantom Bruna electric bicycle also drawing attention.

Forecast Trend Report by Period

Trading Resumes After Delisting Threat Removed

Shares Surge 43% in Three Sessions

Shares of Kosdaq-listed Samchuly Bicycle Co. have jumped 1,780 won, or 43.2%, over the past three trading sessions after the company avoided delisting. Rising global oil prices appear to have supported sentiment by boosting demand for electric bicycles.

Samchuly Bicycle closed at 5,900 won on April 22. The stock has climbed 43.2% since trading resumed on April 20 after the delisting risk was cleared. Shares surged more than 50% in the first two sessions after trading restarted before surrendering some of those gains on April 22.

Trading in Samchuly Bicycle was suspended from Jan. 12 after allegations emerged that Chairman Kim Seok-hwan had created a 1.3 billion won slush fund. The amount was equivalent to 1.39% of the company’s equity capital. The company submitted an improvement plan on March 20, and the Korea Exchange decided on April 17 to maintain the listing after a review and vote by its Corporate Review Committee. The decision ended the trading suspension and removed the company from the watch list.

The stock has advanced despite the management risk as earnings recover. On a consolidated basis, the company swung to an operating profit of 3 billion won in 2024 from an operating loss of 6.3 billion won in 2023. Operating profit then rose to 12.4 billion won last year, pointing to a sharp improvement in profitability. Revenue increased over the same period to 106.8 billion won, 161.2 billion won and 175.6 billion won.

The improvement in earnings is being linked to demand for electric bicycles. Higher global oil prices have raised the cost of owning a car, while public institutions have adopted alternate-day driving restrictions and public parking lots have introduced five-day vehicle rotation rules, prompting more consumers to turn to e-bikes. Bicycle makers are rolling out more commuter-oriented electric bicycles for short-distance travel, promoting them as an alternative in a high-oil-price environment and a practical purchase in a weak economy. Samchuly Bicycle on April 8 launched the Phantom Bruna, an e-bike optimized for city riding. Alton Sports on April 22 unveiled the Kodiak S16 and Kodiak S20, two e-bikes designed for everyday use.

Im Da-yeon, Hankyung.com reporter allopen@hankyung.com