SILICON2's stock price is up more than 7% in early trading on the 20th. The buying sentiment is interpreted as a result of securities firms' outlook that SILICON2 will maintain strong performance due to its competitive advantage in the European and Middle Eastern markets.
As of 9:45 a.m. on the 20th, SILICON2's shares are trading at 39,750 won, up 2,850 won (7.72%) from the previous day on the KOSDAQ market.
On that day, analysts in the securities industry suggested that SILICON2 would continue its revenue growth due to its strong competitive advantage, which attracted buying interest.
Samsung Securities analyzed that SILICON2 has secured a competitive edge in the market through network effects. Lee Ga-young, a researcher at Samsung Securities, noted, "SILICON2 has become a preferred supplier among large retailers as it can provide stable supply despite the impacts of tariffs," adding, "Brands that used to go through other transactions or entered the market directly have started returning to the company."
He pointed out that "Europe and the Middle East are much more fragmented markets compared to the U.S., so the importance of individual European countries for brands is significantly smaller than in the U.S.," and added, "From the priority of market entry, going through SILICON2 is overwhelmingly efficient." There was also analysis suggesting that the company’s competitive advantage will continue as the likelihood of dominant distributors entering the market and intensifying supply price competition is low.
Earlier, on the 19th, SILICON2 held its first conference for analysts since its listing. It is known that Kim Sung-woon, CEO of SILICON2, expressed the company’s willingness to actively communicate with the market and answered various inquiries.