[Special Stock] VTGMP Rises on Earnings Growth Outlook from Cosmetics and Secondary Battery Products

[Asia Economy Reporter Jang Hyowon] VT GMP is showing strong performance driven by rapid growth in the cosmetic division’s sales in Japan and Greater China, normalization of the laminating division, and new sales from secondary battery-related products.

As of 10:55 AM on the 6th, VT GMP is trading at 9,300 KRW, up 3.91% from the previous day.

On this day, Kiwoom Securities analyst Park Jaeil stated, “VT GMP’s cosmetic division recorded sales of 74.6 billion KRW due to rapid sales growth in Japan and Greater China despite the impact of COVID-19,” and added, “Sales in Japan and Greater China are expected to increase by approximately 40-75% compared to the previous year.”

The new businesses in hydrogen energy and next-generation batteries also emerged as growth momentum.

Analyst Park explained, “Based on laminating core technology, they are developing cathode materials and mass production equipment for lithium-sulfur batteries, a next-generation battery, with mass production planned within 2023,” and added, “In January this year, they acquired a 29.2% stake in KJ Green Energy, a fuel cell specialist company, entering the hydrogen fuel cell power generation business.”

He continued, “Starting with the construction of a hydrogen fuel cell power plant with a generation capacity of 19.8 megawatts (MW) in the second half of this year, the total generation capacity is planned to expand to 180 MW,” and forecasted, “Trial operation is expected in the second half of 2022, with full-scale sales beginning in 2023.”

VT GMP’s sales for this year are projected to increase by 42% from the previous year to 152.5 billion KRW, and operating profit is expected to surge by 638% to 40.6 billion KRW.

He assessed, “The main drivers of performance improvement are the rapid sales growth in Japan and Greater China of the cosmetic division, normalization of the laminating division, and new sales from secondary battery-related products,” and added, “In the second quarter, a one-time profit of 20 billion KRW is expected due to the planned post-sale of the subsidiary GMP Global’s Jangandong apartment.”