Sold-Out Item 'Riddle Shot' VT, Record-Breaking Performance Boosts Stock Price Momentum 'Deng Deng'

Operating Profit of 24 Billion KRW in Q1... 3780% Increase YoY
Overseas Sales Attract Attention... Japan Sales Growth Accelerates
China Exports Scheduled to Start in Second Half
Steady Sales Expansion Expected This Year

VT, the manufacturer of 'Riddle Shot,' a popular sold-out item in Daiso cosmetics, has recorded record-breaking performance. Based on solid domestic sales, growth in sales in Japan stands out. With exports to China starting in the second half of the year and expected increases in sales in the United States, the stock price is also soaring.

According to the Korea Exchange on the 16th, VT's stock price closed at 20,550 KRW on the 14th, the most recent trading day, up 6.25% (1,500 KRW) from the previous trading day. Right after the market opened that day, it surged more than 16% to reach a new high of 28,600 KRW. VT's stock price has risen about 43.8% over approximately five months from the beginning of the year (January 2), when it was 17,730 KRW.

VT is the manufacturer of the cosmetics 'Riddle Shot,' which recently gained popularity through word of mouth at Daiso and Olive Young. Riddle Shot settled as the main product within just three quarters after its launch, driving both performance and stock price.

This year's first-quarter sales amounted to 105.5 billion KRW, a 120% increase compared to the same period last year, and operating profit surged 3,780% to 24 billion KRW. The operating profit marked the highest quarterly performance ever recorded. The trend in operating profit margin is even more remarkable: 16% in 2022, 20% in 2023, and 33% in the first quarter of 2024, showing a rapid rise.

Notably, overseas sales are drawing attention. Domestic sales in the first quarter were 22.6 billion KRW (+1057%), but sales in Japan were higher at 37.8 billion KRW (+76%). Expectations for overseas sales are growing. This is because sales through offline channels (Don Quijote), which account for more than 80% of the Japanese cosmetics market, are expected to become fully active.

In particular, exports of Riddle Shot to China will begin in the second half of this year. Sunjae Heo, a researcher at SK Securities, evaluated, "Considering that VT's sales proportion in China approached 70% in 2017, the possibility of success in China is judged to be high."

Along with this, sales growth in the United States is also expected to proceed smoothly. Given that marketing is currently underway after entering Amazon in the fourth quarter of last year, sales growth within the year is anticipated.

According to FnGuide's estimates, this year's annual sales are expected to surge 43.52% year-on-year to 424.1 billion KRW, and operating profit is expected to jump 82.01% to 82.9 billion KRW. There is strong anticipation that these figures will nearly double compared to 2023 sales (295.5 billion KRW) and operating profit (45.5 billion KRW).

Researcher Eunjeong Park of Hana Securities said, "In 2024, growth momentum will be strongest thanks to expansion in Japan offline, domestic market, Southeast Asia, the United States, and Europe," adding, "If examined closely, there are still many countries to enter."