SEOUL, KOREA - A group of small- and mid-sized home electronics companies are enjoying a robust growth in share prices thanks to a sharp improvement in their performances.
A boiler manufacturer KyungDong Navien saw its stock price rise by 9.5 percent in this month alone. After starting an upward movement in August 2012 when its price stood at 6,000 won, the share prices of KyungDong Navien closed at 17,800 won on July 12, a three-fold jump within such a short span of 11 months.
Key factors behind the hike in the share price of KyungDong Navien included the fact that it has maintained a stable growth in sales thanks to entries into overseas markets, despite slowdown in domestic sales. The share of exports in KyungDong's total sales exceeded 30 percent as it has beefed up its "go global" efforts since 2009.
KyungDong's sales and operating profits grew by 11 percent and 16 percent, respectively, last year. Even in the first quarter of this year, its sales rose by 30 percent to 97 billion won, with its operating profits estimated at 7.7 billion won, in a turnaround from a loss a year ago.
A rice cooker maker Lihom-Cuchen also marked a sharp growth in its stock price which rose by 67.8 percent to 4,750 won from 2,830 won in late March, although its stock price underwent adjustments last month.
