[Click eStock] "Pumtek Korea, Unceasing Customer Love Calls"

Samsung Securities analyzed on the 27th that Permtek Korea is benefiting evenly from a diversified customer portfolio. No investment opinion or target price was provided.

Permtek Korea's third-quarter sales and operating profit were 85.2 billion KRW and 12.4 billion KRW, respectively, representing growth of 20% and 34% compared to the same period last year. Gayoung Lee, a researcher at Samsung Securities, said, "Thanks to a diversified portfolio where the top 5 customers account for only about 32% of sales, the company has benefited evenly from the growth of various customer groups."

He explained, "Most of Permtek Korea's sales come from orders directly placed by brand companies, and the unit price is known to be relatively high within the industry," adding, "Permtek Korea's products are used when differentiated containers are needed to provide branding effects or when high-quality containers are required to minimize deterioration during long shipping (export) processes."

He further stated, "With the boom in Korean indie beauty exports, such needs have increased, leading to the highest-ever quarterly separate sales in the third quarter of this year," and explained, "Unlike previous years where the second quarter was the peak due to additional sun care volumes, this year the third quarter surpassed the second quarter."

He especially expected that as the expansion is progressing smoothly, the effect of increased production capacity will also emerge in the future. He said, "Some popular product production lines of Permtek Korea are still in a supply shortage state," and added, "Although it is true that the sales growth rate has not yet caught up with the order growth rate, the insufficient production capacity is being supplemented by night shifts, expanded outsourcing, and increased automation."

He said, "The production capacity expansion is also proceeding without any setbacks," explaining, "Permtek's 4th factory is scheduled to start operations in September to October next year, and Bukook TNC's new tube factory is scheduled to start operations in January next year." He emphasized, "Once the new factories are fully operational, the production capacity increase effect will be more than 30% for Permtek compared to the current level, and about 10-20% for Bukook TNC."