[Click e-Stock] "CTK Receives a Surge of Partnership Offers from Global Plastic-Free Companies"

On July 23, independent research firm ValueFinder analyzed that CTK is receiving a flood of partnership offers from global companies related to plastic-free initiatives, and that the company’s valuation as a cosmetics platform is also expected to be reassessed.

CTK was founded in 2001 and listed on the KOSDAQ market in 2017. Its main business is a turnkey service platform for cosmetics production, and its beauty creation platform, CTKCLIP, has surpassed 46,000 client companies within just two years of its launch, continuing its rapid growth.

This year, its subsidiary acquired a U.S. OTC factory for 27.9 billion KRW, establishing an all-in-one process that can provide product development, distribution, and production to client companies. In addition, by building a factory in the United States, the company has eliminated tariff risks, and full-scale operations are expected to begin in the fourth quarter of this year.

Lee Choongheon, a researcher at ValueFinder, commented, “Thanks to the global expansion of K-beauty led by indie brands, the company’s platform is experiencing a steep increase in client companies. Targeting startup indie brands, which tend to have less experience, is a strength, as it allows the company to establish a proactive network with companies that have high future growth potential from a long-term perspective.”

He also explained, “To sell OTC products in the United States, companies must register with the FDA, which typically takes several months to a year. However, if the registration fails, the entire procedure must be restarted from the beginning. Even leading domestic companies have often failed to meet OTC regulations and faced import bans, so CTK’s acquisition of a U.S. OTC factory is expected to be a major factor in strengthening cooperation with a variety of client companies.”

Furthermore, the recent policy direction of the new administration to expand renewable energy and establish a roadmap for plastic-free initiatives is expected to have a positive impact on CTK.

CTK is producing eco-friendly plastics through its Canadian subsidiary. CTK BIO is developing and producing biodegradable plastic raw materials based on its own masterbatch and compounding technology for biodegradable materials ‘PBAT-PHA’. The company has already obtained biodegradability certification from Europe’s leading testing and certification body, T?V Austria, as well as numerous domestic and international certifications, including from the U.S. FDA and Health Canada.

He added, “CTK has been registered as a vendor for Sysco, a global distribution company with annual sales of 100 trillion KRW, and has also signed a supply contract for biodegradable plastic products with Blue Bottle Korea, a global coffee brand. As such, the company is continuing substantial collaborations with global companies and is expected to benefit from these partnerships.”