"Outperforming Its Core Business": Bedding Brand Hits 50 Billion Won Jackpot in Semiconductor Investment After Betting Half Its Operating Profit

Allermand Invests 13.2 Billion Won in Samsung Electronics and SK hynix
Betting Half of Operating Profit... Investment Delivers 2.7-Fold Return

Samsung Electronics and SK hynix logos (left) and Allergman bedding. Yonhap News Agency · Lotte Department Store

While the semiconductor stock rally centered around Samsung Electronics and SK hynix continues, bedding brand Allergman has emerged as an unexpected beneficiary. Thanks to the semiconductor boom driven by artificial intelligence (AI), the share prices of Samsung Electronics and SK hynix have soared, causing the value of Allergman's assets to nearly triple within just one year of investment.

Bold Investment... Half of Operating Profit Allocated

According to the Financial Supervisory Service's electronic disclosure system on June 1, Allergman purchased 30,000 shares of Samsung Electronics and 17,132 shares of SK hynix last year. The total acquisition amount was approximately 13.2 billion won.

At the time, the average purchase price was about 108,700 won per share for Samsung Electronics and about 587,700 won per share for SK hynix. Considering that Allergman's operating profit last year was 26.9 billion won, the company concentrated nearly half of its annual operating profit into these two semiconductor stocks. This is interpreted as a bold capital allocation strategy, going beyond simply managing surplus funds.

Samsung Electronics and SK Hynix are experiencing soaring stock prices due to the semiconductor boom triggered by artificial intelligence (AI). Photo by The Asia Business Daily

Valuation Surges by 49.4 Billion Won Thanks to AI Tailwinds

The results exceeded expectations. As demand for high-performance semiconductors soared due to the spread of AI, the share prices of both stocks surged, rapidly amplifying investment returns. As of the closing price on May 29, Samsung Electronics stood at 317,000 won and SK hynix at 2,333,000 won.

Based on these figures, the value of Allergman's stake in Samsung Electronics is estimated at around 9.51 billion won, and in SK hynix at around 39.968 billion won. The total valuation stands at approximately 49.4 billion won, generating an appraisal gain of more than 36 billion won within a year. This represents a return of nearly three times the initial investment.

Investment Outpaces Core Business

Allergman's sales last year were 123.6 billion won, down 4.5% from the previous year, but operating profit increased by 1.2% to 26.9 billion won. Although the company retained its industry-leading position with its "allergy-free bedding," growth in its core business has stagnated. However, the appraisal gain (36 billion won) generated from this investment far exceeded last year's annual operating profit (26.9 billion won), causing the company's total asset size to increase sharply.

Samsung Electronics and SK hynix are experiencing soaring stock prices due to the unprecedented semiconductor boom triggered by AI. Since the beginning of this year alone, Samsung Electronics has surged by 164.39%, while SK hynix has jumped by 258.37%. With the so-called "300,000-won Samsung" and "2-million-won Hynix" era upon us, interest in large-cap semiconductor stocks continues to grow.

This content was produced with the assistance of AI translation services.