[Click eStock] "Silicontwo Achieves Record-High First Quarter Results"

On May 13, Hana Securities analyzed that Silicontwo achieved its highest-ever quarterly results in the first quarter of this year. The company raised its target price to 50,000 won, stating that it is revising its earnings estimates for the year upward.

In the first quarter, Silicontwo posted consolidated sales of 250 billion won and operating profit of 47.7 billion won. These figures represent increases of 64% and 62%, respectively, compared to the same period last year.

Park Eunjeong, a researcher at Hana Securities, stated, "Sales and operating profit exceeded market expectations of 190 billion won and 39.1 billion won by 25% and 22%, respectively," adding, "The global expansion of demand for K-beauty and Silicontwo's proactive development of sales channels are the main drivers behind these surprise results."

She continued, "Over the past three years, the growth momentum centered on the United States has been spreading to Europe, the Middle East, and other regions worldwide," and added, "A notable change in the first quarter is that, for the first time, sales in Europe surpassed those in the United States."

Park further analyzed, "Despite a high base last year, Korean cosmetics exports continue to show double-digit growth. Silicontwo is steadily increasing its export market share through early entry and securing sales channels." She explained, "Even as quarterly sales hit record highs and the number of countries entered expands, Silicontwo continues to maintain an excellent level of management through highly accurate demand forecasting and securing reliable clients."

She estimated that Silicontwo will achieve sales of 960 billion won and operating profit of 180 billion won this year, increases of 39% and 33%, respectively, compared to last year.