[Click e-Stock] "Silicontwo's Earnings Momentum Remains Strong... Target Price Raised"

On July 4, Yuanta Securities raised its target price for Silicontwo to 69,000 won, approximately 40% higher than the previous target of 49,000 won. The closing price on the previous day was 52,900 won.

Recently, Silicontwo's founder and largest shareholder, Kim Sungwoon, sold a portion of his shares on the open market. This triggered backlash and panic selling among individual investors, causing the company's market capitalization to drop by more than 300 billion won over two days. The company explained that Kim's share sale was to secure funds for paying gift taxes. However, following the disclosure of the share sale, the stock price fell by 13%.

Regarding this, Lee Seungeun, a researcher at Yuanta Securities, commented, "This issue is not directly related to the company's fundamentals or earnings outlook. Over the next few years, a certain amount of repeated share sales is inevitable due to the current structure. While the shareholding ratio remains at a stable level, the market appears to be more concerned about the uncertainty of when additional shares might come to market and the potential impact on the stock price at that time."

Lee emphasized that attention should be paid to Silicontwo's earnings momentum.

He stated, "The retail base in European markets, including France and the United Kingdom, is rapidly strengthening. From the second half of the year, initial shipments to the Middle East and entry into new markets in Latin America will also begin in earnest. The brand mix is also being reorganized around emerging high-growth brands such as Dalba, Celimax, and Purito Seoul, while maintaining a stable portfolio together with existing brands like Medicube and Dr. Althea."

He added, "Structurally, the trend of performance improvement is continuing effectively. Qualitative growth is occurring across margins, brands, and regions. Therefore, the recent stock price correction may actually help ease valuation pressures."