[Click eStock] "TonyMoly, The Power of Offline That Will Be Proven Someday"

Heungkuk Securities analyzed on the 23rd that the offline strength of TonyMoly, which will be proven someday, is expected.

Lee Ji-won, a researcher at Heungkuk Securities, stated in a report on the same day, “The growth of Korean cosmetics exports to the United States remains solid, and K-Indie brands continue to maintain top rankings in the Amazon skincare category,” adding, “For the currently low market penetration rate of Korean cosmetics in the U.S. to increase, expansion from online to offline distribution channels is essential.”

Researcher Lee Ji-won said, “TonyMoly has already entered more than 4,000 major offline stores in the U.S., including Ulta Beauty and Target, and there is significant potential for sales growth in the U.S. offline channels,” and forecasted, “Assuming the growth trend of Korean cosmetics in the U.S. continues for the next several years, TonyMoly’s considerable offline competitiveness and sales know-how will eventually lead to increased U.S. exports with relatively higher profit margins compared to other channels, contributing to an improvement in the company’s overall operating profit margin.”

He added, “Based on the strong offline store network already secured in the U.S., TonyMoly’s U.S. export revenue is estimated to reach 19.3 billion to 48.2 billion KRW by 2026, with its share of total exports increasing to around 60% by 2026,” and predicted, “TonyMoly’s overall sales growth rate is expected to be 21-33% annually, and due to the growth of high-margin export channels, the company’s operating profit margin is projected to improve to approximately 13.7% by 2026.”