[Featured Stock] Zenic Hits 52-Week High... Expectations for Profit Turnaround After 4 Years Due to North American Success

Hydrogel Mask 'Biodance' Popular, Mass Sales on Amazon
Establishing ODM Production System, Expanding Global Market
Profit Turnaround Expected After 4 Years

Genic recorded a 52-week high. The growth in the North American market is expected to lead to a turnaround to profitability for the first time in four years, which appears to have influenced the stock price.

As of 9:24 AM on the 21st, Genic's stock is trading at 23,950 KRW, up 22.07% (4,330 KRW) compared to the previous trading day. After touching 20,000 KRW on the 16th, it broke its 52-week high again within just three trading days. Since the beginning of this year, Genic's stock price, which surpassed 10,000 KRW for the first time in five years since March 2019, has been on a relentless upward trajectory.

Genic, the originator of hydrogel masks, is enjoying great popularity in the North American market. This is because the 'Biodance Bio Collagen Real Deep Mask,' produced through original design manufacturing (ODM), is selling like hotcakes on Amazon.com, the world's largest e-commerce platform. There were even remarks saying it is "so popular that it can't be sold enough." Genic is putting the saying "strike while the iron is hot" into practice. In May, it signed a contract with Beauty Selection for ODM production and product supply, initiating preparations for a global mass production system.

Park Eun-jung, a researcher at Hana Securities, said, "As demand for Biodance surged, Genic, capable of mass supply, was selected as the key manufacturer, and currently Genic handles all overseas market volumes except Japan," adding, "Starting with Costco in North America, expansion into offline markets such as Sephora and Target will be in full swing next year. Additional regional expansions will be carried out sequentially, and new domestic and international clients are being added during this process."

According to FnGuide, Genic recorded sales of 28.1 billion KRW and an operating loss of 4 billion KRW last year. It had been in the red for three consecutive years since 2021. After great success with the past 'Hayumi Pack,' it struggled due to the absence of follow-up products. However, this year, it is expected to turn a profit with an operating income of 6.9 billion KRW. As of the first quarter of this year, Genic's sales composition by segment showed that the ODM business accounted for 76%, exports 18%, and brand 6%.