[Click eStock] "Silicon2, the Biggest Beneficiary of the Surge in K-Indie Beauty Exports"

Shinhan Investment Corp. predicted on the 30th that Silicon2, a KOSDAQ company, will benefit from the rapid increase in exports of Korean 'Indie Beauty' brands to the United States.

Park Hyunjin, a research fellow at Shinhan Investment Corp., stated in a report on the same day, "Silicon2, which has distribution infrastructure in the U.S., showed strong performance in the first quarter of this year due to the recent increase in exports of Indie Beauty brands to North America," adding, "In particular, the improvement rate of operating profit was higher than the sales growth rate." He analyzed that this means "Silicon2 has an advantage in negotiation power when negotiating purchase prices with brand companies."

Park said, "The U.S. demand for the top three customers, brands C, J, and A, which contribute significantly to sales, remains solid, and the recently emerging S and M brands in the North American region are also experiencing strong demand growth," adding, "Exports to the U.S. continue to steadily increase in the second quarter of this year."

He noted, "Silicon2's inventory at the end of January this year increased by 33% compared to the previous quarter," and explained, "The nature of the core business, which involves purchasing all inventory upfront and then selling it, means that an increase in inventory can predict the growth strength of future quarterly performance," concluding, "Considering the sharp increase in inventory, sales in the second and third quarters of this year are expected to grow significantly."