VT GMP, Equips Stable 'Cosmetics' with Future Growth Engine 'Battery'

[Asia Economy Reporter Jang Hyowon] VT GMP, a KOSDAQ-listed company, is expected to deliver strong performance this year as it pursues stable growth in its cosmetics business along with the next-generation battery business, which is a future growth engine.

VT GMP operates in various sectors including cosmetics, laminating, batteries, and bio. Its core business, the cosmetics division, actively sells products under the ‘VT Cosmetic’ brand in Japan and China.

Another key division, the laminating business, has recently normalized and has started the lithium-sulfur battery business to secure next-generation growth engines.

On the 11th, KB Securities analyst Lee Su-kyung stated in a report, “This year, VT GMP’s cosmetics segment shows remarkable growth,” adding, “The favorable Japanese market is driving overall performance, and according to media reports, the Cica Daily Soothing Mask ranked first in overall sales, surpassing the beauty category, during the Qoo10 Mega Sale event held in Japan in March.”

She continued, “The Greater China region’s sentiment is also not bad,” noting, “However, due to the base effect from increased orders prior to the factory shutdown caused by COVID-19 in the first quarter of last year, the Greater China region’s first-quarter performance this year is expected to decline compared to the same period last year, but annual scale growth is likely due to offline channel expansion in 2021.”

The laminating division is also showing signs of normalization. VT GMP is striving to secure future growth engines by starting secondary battery and automotive parts businesses based on its proprietary technology.

The analyst said, “Since the fourth quarter of last year, there have been minor but ongoing sales from induction rollers (used in secondary battery manufacturing equipment) and Rudenox heaters (heaters for improving secondary battery efficiency).”

However, she pointed out a risk factor, stating, “In June 2019, convertible bonds and in March 2020, exchangeable bonds were issued for the purpose of acquiring securities of other companies,” adding, “There is a dilution effect of about 6.5% relative to the number of issued shares.”