Stock Price Up 26% Since Late February
First Quarter Operating Profit Expected to Meet Market Expectations
Faster Achievement of Monthly Order Targets
As K-Beauty gains popularity worldwide, Permtek Korea is continuing its upward stock trend based on improved performance. Analysts expect that the company achieved results in line with market expectations for the first quarter of this year.
According to the financial investment industry on the 4th, Permtek Korea's stock price rose 26.0% compared to the end of February. During the same period, the KOSDAQ index fell 8.1%. The return compared to the market reached 34.1 percentage points.
Founded in 2001, Permtek Korea specializes in cosmetic containers, manufacturing pumps and containers, tubes, compacts, droppers, sticks, and other types of containers. The company is expanding its product portfolio to include containers for daily necessities. Last year, it recorded sales of 337.5 billion KRW and operating profit of 48.4 billion KRW, representing increases of 18.6% and 37.1% respectively compared to the previous year.
Hanwha Investment & Securities estimated that Permtek Korea achieved sales of 90.2 billion KRW and operating profit of 12.6 billion KRW in the first quarter of this year. These figures represent increases of 17.3% and 23.1% respectively compared to the same period last year. The operating profit is believed to have met the market expectation of 12.3 billion KRW.
Han Yoo-jung, a researcher at Hanwha Investment & Securities, explained, "Productivity has improved through new facility expansions and workforce reinforcement," adding, "Contrary to concerns, the rapidly increased order backlog was smoothly processed without bottlenecks." She further noted, "Exports from domestic cosmetic indie brands continue to perform well, and orders from global clients are also increasing."
To respond to the growing orders, Permtek Korea will complete its 4th factory in July this year. Once the 4th factory, which is about 40% the size of the existing 1st to 3rd factories in terms of area, is completed, it will be easier to handle orders. As the number one container company in Korea, Permtek Korea does not rely heavily on a single brand. Various domestic cosmetic indie brands are gaining popularity in the US, Europe, and the Middle East. This means that cosmetic containers produced by Permtek Korea are spreading worldwide.
Seong Hyun-dong, a researcher at KB Securities, explained, "With the growing influence of social networking services (SNS) and video platforms, various indie brands have emerged," adding, "The export countries are also becoming more diverse." He analyzed, "Since indie brands rely on outsourcing for production and distribution, this benefits Permtek Korea."
Lee Ga-young, a researcher at Samsung Securities, introduced, "Permtek Korea set a record for the highest order amount in February this year," and estimated, "It is believed that the order target for March, which was higher than February, was also achieved." She added, "After the expansion of the 4th factory, production capacity is expected to increase by 20-30%."
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