[Click eStock] "Genic Significantly Expands Production Capacity in Line with Global Order Growth"

On June 9, Hana Securities analyzed that Genic is significantly expanding its production capacity in line with the increase in orders in the global market, moving toward achieving record-high results.

Kim Dahye, a researcher at Hana Securities, stated in a report on this day, "As orders have surged, Genic has proactively expanded its production capacity since last year." Genic's production capacity, centered on hydrogel mask packs, started at 6 million units per month at the end of last year and was expanded to 8.2 million units per month through an increase in March. Taking overtime shifts into account, the maximum capacity can reach up to 9.5 million units. With the continued increase in orders, it is expected that by early July, Genic will secure a production capacity of 9 million units per month, and up to 10 million units per month with overtime. The automation equipment for the packaging process, which had been a bottleneck, is scheduled to be fully implemented during the second quarter.

Kim added, "The group company is firmly committed to fostering Genic, so business synergies (related to Isys Cosmetic) are expected to be further realized in the second half of the year." Genic's position in the global beauty market is also becoming more solid. The company continues to rank first in mask pack sales on Amazon in the United States, and based on this, it has reportedly entered Sephora, a key beauty distribution channel in the U.S. In Europe, Genic has become a bestseller on Amazon in France, Germany, and Italy, and has also entered Boots and Costco in the United Kingdom. Kim Dahye analyzed, "As major clients expand into more global markets and enter new channels, the volume of orders is increasing rapidly."

In particular, Genic has established itself as a key partner in the European expansion strategy of Silicon Two, a global distribution company. With global demand for hydrogel mask packs surging, Genic is not only expanding orders from major brands but is also working on multiple projects with various global brands. The results of these projects are expected to be reflected in earnest from the second half of this year. Kim noted, "Projects with flagship brands of global companies have also become full-scale, and the related volumes are expected to be reflected in the results starting from the third quarter."

The concentration of orders is driven by the fact that Genic manufactures the best-selling hydrogel mask packs in key global markets. In addition, Genic has passed audits by major global companies such as L'Oreal, Est?e Lauder, and Sephora at an early stage, proving its excellence in manufacturing, quality, and management. Furthermore, based on its years of experience in developing hydrogel formulations, Genic is recognized for its competitive edge in developing and commercializing advanced formulations and large-scale manufacturing.

Besides hydrogel mask packs, Genic is also expanding its product range to include basic skincare products. As a result of focusing on increasing orders for basic skincare products since last year, the related volumes are expected to be reflected in the results for the second half of this year. Genic also owns its own skincare brand, and with its recent confirmed entry into Kroger, a major U.S. distributor, export sales are expected to accelerate in the second and third quarters. Accordingly, the overall unit price of orders is expected to rise gradually.

Kim Dahye stated, "In the second quarter, the operating rate is expected to exceed our previous estimates, and from the third quarter, the effect of the rapid increase in orders will become apparent." She forecasted that "Genic's consolidated revenue in 2025 will reach a record high of 120 billion KRW, up 137% year-on-year, and operating profit will reach 34.8 billion KRW, up 478% year-on-year."