[Click eStock] "Manyeogongjang, Overseas Growth Expected to Accelerate"

Kiwoom Securities analyzed on the 24th that Manyo Factory is expected to experience significant overseas growth.

Manyo Factory is a small to medium-sized cosmetics brand company, managing brands such as Manyo, Our Vegan, Vanilla Boutique, and No Mercy. The flagship brand Manyo accounts for the majority of total sales.

In a report on the same day, Sojeong Cho, a researcher at Kiwoom Securities, stated, “Manyo Factory is expected to record consolidated sales of 33 billion KRW and operating profit of 4.4 billion KRW in the first quarter of this year, representing increases of 49% and 10% respectively compared to the same period last year.” She explained, “This is due to partial reflection of the Nego King performance in the domestic market in Q1, favorable performance in the domestic MBS channel, and expected growth overseas from offline expansion in Japan and growth within existing channels in the US.”

The full-year performance is forecasted to reach sales of 138.7 billion KRW and operating profit of 25.6 billion KRW, which are increases of 32% and 61% year-on-year, respectively. Growth in both domestic and overseas channels is expected to be solid, with overseas channels outside of China showing particularly notable growth.

Researcher Cho explained, “In Japan, sales declined last year due to a marketing gap during the transition from online to offline channels, but starting this year, marketing activities such as the launch of the Cherry Blossom Edition, event hosting, and model recruitment will be in full swing.”

She also analyzed, “In the US, initial shipments of cleansing oil to Costco offline stores are scheduled to begin in July this year, and entry into Ulta is planned for the second half of the year. If market response is positive, additional shipments, category expansion, and growth through new channel entry can be expected.”

Growth in domestic channels is also analyzed to be favorable. She predicted, “Thanks to the growth of Olive Young and the hosting of the Nego King event, domestic channel growth is expected to continue this year. The scheduled character collaborations and Hollywood movie collaboration products in the second half of the year will also have a positive impact on maintaining growth momentum.”