[Click eStock] "Silicontwo Continues Global Sales Growth, Led by Europe"

Target Price Raised to 71,000 Won

On July 2, Samsung Securities maintained its 'Buy' investment rating on Silicontwo, stating that "global sales growth continues, centered on Europe," and raised its target price to 71,000 won, up from the previous target.

Lee Gayoung, a researcher at Samsung Securities, explained, "In the case of the European subsidiary, the number of brands supplied to major MBS (multi-brand store) channels such as DM and Sephora in each country is increasing. In particular, sales are maintaining high growth as the company has established itself as a main K-beauty vendor at Boots in the UK." She added, "In the second quarter, sales are expected to reach 98 billion won, as the company expands supply of popular indie brands such as Medicube, Dr.Althea, and TirTir."

Significant growth is also expected in the Middle East market. She commented, "The Middle East subsidiary, established at the beginning of the year, has been fully operational since the second quarter. There is a high possibility that both sales and profit margins will improve from the third quarter onward, as sea freight volumes are added to the high growth previously achieved solely through air freight."

The US market is also showing a gradual recovery. Lee noted, "In the past, companies such as Memebox (Kaja) and Cosrx preferred direct transactions with US distributors. However, recently they have been returning to a supply strategy through Silicontwo." She forecasted, "In the second quarter, deliveries of brands such as Round Lab, Isntree, and Kaja to Ulta Beauty, a US beauty retail store, are increasing, and US sales are expected to rise slightly on a quarterly basis."

Lee emphasized, "As the only major K-beauty export distributor operating across all key global markets, the company's position is expected to remain solid for the time being."