[Click eStock] "Pumtek Korea, Highlighting Stable Growth Appeal"

Shinhan Investment Corp. analyzed on the 8th that Pumtec Korea's appeal as a stable growth stock is becoming prominent. No investment opinion or target price was provided.

Pumtec Korea recorded consolidated sales of 85.5 billion KRW and operating profit of 12.7 billion KRW in the second quarter. This represents increases of 13% and 23%, respectively, compared to the same period last year. Hyunjin Park, a researcher at Shinhan Investment Corp., stated, "The increase in demand from brands entering Olive Young and the rise in overseas export volumes led to higher sales of cosmetic tube containers," adding, "The rise in operating profit margin of the tube business division is due to an increase in large orders, and additionally, improvements in production efficiency and the effect of fixed cost dispersion have strengthened the profit improvement trend."

He continued, "The sales proportion of small and indie brands is steadily increasing, and by product category, sticks, compacts, and pump containers are showing stable double-digit growth."

He especially expected the growth trend to continue. He emphasized, "In the third quarter, due to summer vacations and Chuseok holidays, the number of business days will decrease to less than 10 days, so growth compared to the previous quarter may be weak; however, growth compared to the same period last year will be strengthened due to increased production capacity from additional facilities," and added, "Production capacity is expected to increase by around 15% by the end of the year and to grow by more than 40% by 2025."