[Click e-Stock] "Dalba Global Expected to See Steady Growth in Earnings and Stock Price... Target Price Raised"

On July 8, Korea Investment & Securities raised its target price for Dalba Global from 180,000 won to 230,000 won, anticipating that both the company's earnings and stock price will continue to show a steady upward trend. The investment opinion remains 'Buy'.

Kim Myungjoo, an analyst at Korea Investment & Securities, stated, "We are raising our target price by 27.8% compared to the previous level," and explained, "Given the recent increase in income among the Gen-Z generation, which is leading to a recovery in demand for premium products, we expect Dalba Global's earnings and stock price to continue their steady upward trajectory."

Demand for premium products has been steadily increasing. Kim noted, "Looking at the recent earnings of global consumer goods companies, demand for luxury and premium products remains solid, contrary to market expectations." He analyzed, "This trend appears to be influenced by the income growth of the Gen-Z generation, which is the leading demographic in the cosmetics industry. This is positive for Dalba Global, which aims to be a premium skincare brand."

Dalba Global's earnings for the second quarter of this year are expected to exceed market expectations. Kim projected, "Dalba Global's second-quarter sales will reach 130.7 billion won, up 76.9% year-on-year, and operating profit will rise by 117.6% to 38.3 billion won, exceeding market expectations for operating profit by 5.3%." He added, "Despite a high base last year, Japanese cosmetics exports have remained strong this year, and Dalba Global's exports to Japan are expected to be better than in the first quarter. In addition, Dalba Global products have recently achieved strong rankings in Amazon's cosmetics categories in various countries."

However, considering macroeconomic uncertainties, there is a possibility of increased stock price volatility. Kim commented, "Despite the short-term surge in the stock price following the lock-up expiration on June 22, stock price volatility may increase before and after earnings announcements for cosmetics companies, given macro uncertainties such as tariffs and exchange rates."