[Click eStock] "Manyeogongjang, Performance Growth Expected with Overseas Expansion"

Eugene Investment & Securities Report

On the 22nd, Eugene Investment & Securities evaluated that Myeonnyeo Gongjang is expected to see growth in overseas sales, particularly centered on Japan.

Myeonnyeo Gongjang is a cosmetics brand company that sells natural-origin ingredient-based naturalistic functional basic skincare and cleansing products, ampoules, and serums. It launched the basic cosmetics brand 'Myeonnyeo Gongjang' in 2012, and in 2018 launched 'Vanilla Boutique,' focused on perfumes. In 2021, it introduced the vegan concept basic cosmetics 'Our Vegan,' and in 2022, the vegan color cosmetics 'No Mercy.'

Looking at the sales proportion of major products, ampoule serum products account for 36.7%, cleansing products 35.5%, and skincare products 21.5%. By channel, online channels account for 66.6%, offline 33.4%, with exports making up 55% and the domestic market about 45%.

The company is expected to expand its overseas presence centered on Japan. It entered the Japanese beauty market, which ranks third globally, in 2019. Over the past four years, it has shown a high annual sales growth rate of 164.8%, achieving strong performance growth by ranking high on platforms such as Japan's Qoo10 and Rakuten. Japan accounts for nearly 76% of total export countries. Researcher Park Jong-seon of Eugene Investment & Securities said, "The company established a Japanese corporation last October, and it is expected to continue performance growth by expanding aggressive offline sales from a stable online sales base."

Additionally, continuous pursuit of mid- to long-term growth strategies such as brand renewal, launching various new products, and entering the color cosmetics market is also an investment point.

The company's desired public offering price is between 12,000 and 14,000 KRW. The price-earnings ratio (PER) is around 10.7 to 12.5 times. The average PER of similar domestic companies such as Clio, iFamilySC, Aekyung Industry, and VT GMP is 21.2 times, representing a discount of about 41-49%. Researcher Park Jong-seon explained, "After listing, the freely tradable shares will be 17% (2.81 million shares) of the total shares, which is a low burden, so the future stock price outlook is positive." The company is scheduled to be listed on the domestic stock market on the 8th of next month after public subscription on the 25th and 27th of this month.