[Special Stock] Zenic, Performance Growth Continues This Year Following Last Year... "Expanding Hydrogel Mask Pack Orders"

Zenic is on the rise. It appears that securities firms' analysis, which expects continued performance growth this year following last year, has had an impact.

As of 9:50 AM on the 3rd, Zenic was trading at 21,350 KRW, up 600 KRW (2.89%) compared to the previous trading day.

Zenic recorded provisional sales of 19 billion KRW and operating profit of 3.3 billion KRW in the fourth quarter of last year. Sales grew 207% year-on-year, and operating profit turned positive. Annual sales also increased by 76% compared to the previous year to 49.5 billion KRW, with operating profit at 5.7 billion KRW, showing profitability.

Park Eun-jung, a researcher at Hana Securities, said, "Looking at the fourth-quarter performance by segment, OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) sales are estimated at 17 billion KRW (accounting for 90%), growing 273% year-on-year," adding, "Exports and brand sales are estimated at 1.4 billion KRW and 600 million KRW, respectively."

She explained, "By product category, hydrogel mask pack sales are estimated at 16.6 billion KRW, a 917% increase compared to the same period last year," and "Sales to major clients appear to have increased by 70% compared to the previous quarter." She added, "Due to increased operating rates and higher contribution from core product lines, the operating profit margin reached 17%."

The performance improvement trend is expected to continue. The projected annual sales for this year are 120 billion KRW, a 145% increase from the previous year, and operating profit is expected to rise 438% to 30.5 billion KRW. She said, "As global consumer demand for hydrogel mask packs increases, operating rates have sharply risen," noting, "It is understood that production capacity reached about 5 million units per month in the third quarter of last year and 7 million units per month in the fourth quarter." She added, "With strong order growth, additional line expansion is expected to be decided within the first quarter."

She forecasted, "We expect an increase in volume due to expansion of existing clients' regions and channels, expansion of orders to new legacy, indie, and global brands, and growth in skincare product sales," and predicted, "Additionally, orders for sheet mask packs will also increase simultaneously."