[Stock of the Week] Dalba Global: From "Flight Attendant Mist" to Global Super Brand

‘Premium Vegan Cosmetics’ Success Model
"Higher Profit Margins with Overseas Expansion"
Securities Firms Raise Target Prices One After Another

Editor's NoteTo all retail investors dreaming of successful investments: how well do you really know the stocks you buy with your own money? In an online environment overflowing with unfiltered information, Asia Economy aims to be your hands, feet, eyes, and ears, delivering accurate information about companies. Each week, we focus on companies that rank high in search queries on FnGuide, a financial information provider, and deliver not only basic information but also analysis of related companies such as partners, clients, and investors. We will break down the company’s financial status, business performance, and future value in an easy-to-understand way. Every week, we bring you the “stock of the week”?the so-called “stock of interest” (“gwanjong”)?under this title.

"We have earned the love of domestic and international customers with innovative products that balance emotion and efficiency. Even after our listing, we will continue to grow beyond premium vegan beauty to become a global super brand." This was the ambition expressed by Dalba Global CEO Ban Sungyeon (43) at the company's IPO press conference at the end of April. With a successful IPO and continuously rising business performance, Ban's words have become reality.

Dalba Global, which debuted on the KOSPI market on May 22, closed its first trading day at 111,000 won, up 66.06% from its IPO price of 66,300 won. Over the following 54 days, the share price continued to rise, reaching 235,000 won as of 11:25 a.m. on July 15. This represents a 254% increase from the IPO price. In July, two out of the 30 most-read company reports on financial information provider FnGuide were about Dalba Global.

‘Premium Indie Brand’ Strategy Resonates Globally

Dalba Global is well known for its cosmetics brand d'Alba. The company began operations in 2016, launching products based on ingredients sourced from Alba, Italy, known for its white truffles. In particular, the spray serum dubbed the "flight attendant mist" gained word-of-mouth popularity, putting the company on a solid growth trajectory.

The premium indie brand strategy proved effective. The rare combination of "luxury + vegan" resonated in the market. By offsetting seasonal sales gaps with mist (strong in winter) and sunscreen (strong in summer), the company stabilized its performance. Its flagship product, Truffle First Spray Serum, surpassed 50 million bottles in cumulative global sales, while the Waterfull Essence Sun Cream, known for its non-whitening, moisturizing feel, also gained popularity, selling over 10 million units. As a result, sales surged from 700 million won in 2017 to 309.1 billion won last year.

The company also demonstrated global expansion. Last year, overseas sales accounted for 45.6% (145 billion won) of total revenue. By region, Double Cream was popular in Japan, the US, and Europe; Eye Patch in Russia; and Vegan Cleanser in Southeast Asia, showing the effectiveness of its localization strategy.

Dalba Global is also actively expanding its product categories beyond traditional cosmetics. Park Jongdae, a researcher at Meritz Securities, stated, "The company is already actively developing creams, mask packs, and devices. Rather than seeing this as a challenge, it should be viewed as 'high growth potential,' especially since it has established a comprehensive global online marketing platform."

Record-Breaking Q2 Results Expected... "Accelerating Overseas Expansion"

The securities industry expects Dalba Global to post record-breaking quarterly results in the second quarter. Park Eunjeong, a researcher at Hana Securities, said, "Second-quarter sales are expected to reach 140 billion won, with operating profit at 39.7 billion won?a quarterly record. The company is entering a full-fledged sales expansion cycle, with key markets such as Japan, Russia, and North America still in the early stages of expansion."

Overseas sales are expected to reach 84.5 billion won, a 159% increase year-on-year. In Japan, sales are projected to surge 333% to 24 billion won, with online and offline channels accounting for 70% and 30%, respectively. Sales in Russia and Central Asia are expected to grow 43% to 19 billion won. In the US, sales reached 15.3 billion won, up 190%, with Amazon and B2B channels maintaining an 80% and 20% share, respectively.

Kim Myungjoo, a researcher at Korea Investment & Securities, also stated, "Second-quarter sales are expected to reach 130.7 billion won, with operating profit at 38.3 billion won, exceeding market expectations by 5.3%." He added, "Exports of cosmetics to Japan are showing a strong trend. Recently, Dalba Global products have ranked well in Amazon's cosmetics categories in various countries, ranking second in Spain and ninth in Germany without any special promotions."

Lee Haeni, a researcher at Eugene Investment & Securities, emphasized, "The higher the overseas expansion, the greater the profit margin." She explained that the strategy of first gauging market potential and building brand awareness online, then cautiously entering offline channels, helps maintain a high-margin structure. She also noted, "The overwhelming steady seller, the mist, continues to account for over 50% of sales, while diversification into sun care, creams, mask packs, and devices is underway. Since the first quarter of this year, the share of sun care (21%) and mask packs (5%) has been growing rapidly."

Sales Expected to Surpass 500 Billion Won This Year... Establishing Presence in US Market Remains a Challenge

With its high growth potential recognized, target stock prices have been raised in succession. Korea Investment & Securities raised its target price from 180,000 won to 230,000 won, while Hana Securities increased its target from 170,000 won to 290,000 won. Meritz Securities and Eugene Investment & Securities set new targets at 250,000 won and 260,000 won, respectively.

Researcher Kim Myungjoo noted, "Although the Korea Exchange lifted the lock-up (mandatory holding agreement) for new IPO shares held by venture capital (VC) firms on June 22, the share price surged in the short term. Considering the rebound in demand for premium products driven by rising incomes among Generation Z (born from the mid-1990s to early 2010s), both performance and share price are expected to continue trending upward."

Dalba Global faces the dual challenge of surpassing 500 billion won in sales this year and establishing a solid foothold in the US market. Researcher Park Jongdae commented, "There is a high probability that annual sales will exceed 500 billion won this year. Entry into the US market is key to Dalba Global's mid- to long-term growth. Whether the company can establish itself in the US market from the second half of this year to the first half of next year will be crucial."

Another challenge is whether to collaborate with vendors such as Silicon2. In the distribution industry, vendors are companies that connect manufacturers and retailers. Typically, small and emerging manufacturers or brands use vendors to enter offline channels such as hypermarkets and shopping malls, as well as online platforms like Amazon and Coupang.

Researcher Park Jongdae added, "Currently, Dalba Global is almost the only emerging indie brand not collaborating with distribution vendors such as Silicon2. While the company currently maintains full control over branding and marketing to preserve brand identity, the issue is efficiency. Utilizing vendors could allow sales to triple in a short period of time."