On March 27, according to South Korean media reports, the well-known cell phone accessories manufacturer ELENTEC is diversifying its income sources by adding new business ventures such as electronic cigarettes and home energy storage systems (ESS), alongside its established mobile communication business, to increase profits.
In the fourth quarter of last year, Elentec's sales revenue was 205.4 billion Korean won (approximately RMB 1.1 billion), a decrease of 7% year-on-year, and operating profit was 13.5 billion Korean won (approximately RMB 72 million), a decrease of 21% year-on-year. In 2022, the sales revenue and operating profit are expected to increase by 31% and 125% year-on-year respectively, reaching 997.9 billion Korean won (approximately RMB 5.3 billion) and 79.8 billion Korean won (approximately RMB 420 million).
According to Shinhan Investment & Securities researcher Shim Won-yong, Elentec's product sales show that phone cases account for 33%, electronic cigarettes account for 31%, and battery packs account for 17%.
This year marks a turning point as the full launch of e-cigarettes and household energy storage systems has led to an increase in sales percentage. It is expected that new businesses will become the main source of income next year and will result in revenue growth.
Shim Won-yong predicts that Elentec's electronic cigarette sales will decrease by 5% year-on-year to 289.4 billion Korean won (approximately 1.53 billion yuan) this year, and will increase by 10% to 319.3 billion Korean won (approximately 1.7 billion yuan) next year.
References:
IRANTECH to expand electronic cigarette and home-use ESS business" - Shinhan
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