Allerman, Korea's top bedding company, is delivering returns from stock investments that extend beyond its core quilt-making business. The company deployed its cash reserves last year to make concentrated bets on major semiconductor stocks including Samsung Electronics (005930.KS) and SK hynix (000660.KS), booking valuation gains equivalent to nearly half of its annual operating profit within months.
According to the Financial Supervisory Service's electronic disclosure system on Wednesday, Allerman invested approximately 13.3 billion won of its own funds last year to purchase 30,000 shares of Samsung Electronics and 17,132 shares of SK hynix. The average purchase prices were 108,800 won and 587,800 won per share, respectively. Given those price levels, the company likely made the bulk of its purchases late last year.
Based on the closing prices on the 16th, Allerman is estimated to have booked valuation gains of approximately 13 billion won from the investments. The figure represents about 49% of the company's total net profit of 26.5 billion won last year. In effect, the company earned nearly half of what it made selling quilts and mattresses for an entire year through stock market gains in a short period.
Because the stocks only began rallying in earnest early this year, the impact on the company's reported net profit for last year was minimal. With the two companies' share prices expected to continue rising alongside growth in the global semiconductor market, Allerman's net profit this year could hit a record high.
The investment reflects strong conviction on Allerman's part. The company had previously managed its spare cash primarily through stable instruments such as government bonds, funds and real estate. This marks the first time it has committed hundreds of billions of won in this manner to specific listed stocks. The 13.3 billion won investment exceeds 80% of the company's cash and cash equivalents as of the end of 2024 and surpasses its net profit of 11.5 billion won for that year.
Allerman is 100% owned by CEO Kim Jong-woon and his related parties. Leveraging its "allergy-free bedding" marketing, the company has widened its lead over rival Evezary to maintain its top position in the bedding industry. Last year, it posted revenue of 123.6 billion won and operating profit of 27 billion won. Its flagship product is a goose-down comforter set, and since 2020 it has been diversifying beyond bedding into mattresses and the broader bed business.
