[Click eStock] "T&L Growth Slows from Q2 Due to Tariffs and Weak U.S. Consumption... Target Price Cut"

On September 17, Sangsangin Securities lowered its target price for T&L to 80,000 won, stating, "Since the second quarter of this year, T&L's growth rate has been declining due to a combination of factors including a drop in the exchange rate, tariffs, and sluggish consumer demand in the United States."

In the first half of 2025, T&L's consolidated revenue reached 90.1 billion won, up 13.1% year-on-year, while operating profit rose 7.9% to 30.2 billion won. However, in the second quarter alone, revenue fell 29.3% year-on-year to 38.8 billion won, and operating profit plummeted 52.0% to 10 billion won.

In particular, exports of hydrocolloid wound dressings-a core product-were weak, reaching only 23.2 billion won in the second quarter, a 37.8% decrease from the same period last year. Ha Taegi, a researcher at Sangsangin Securities, predicted, "Performance in the third and fourth quarters is expected to be similar to the second quarter." He explained, "Despite the tariffs in the U.S. market, where exports account for a large portion, T&L has decided to maintain consumer prices. As a result, the decrease in margins will have to be shared with the U.S. distributor (C&D), making a decline in export value and a rise in cost ratios inevitable."

However, he forecasted, "Due to the base effect, exports of wound dressings to the U.S. market are expected to recover and return to a growth trajectory from the second quarter of next year."

He offered a positive outlook for long-term performance. Ha noted, "T&L is also working on supplying wound dressing materials to major overseas companies. If the supply of materials to the global market ramps up in the future, revenue is expected to increase significantly."

There are also high expectations for microneedle products. Although sales in the first half of this year remained modest at 4 billion won, T&L is working to sign supply contracts with global cosmetics companies by the end of this year or early next year. If a contract is secured, sales are expected to increase with the product launch a year later.

There is also the possibility of an increase in dividends. T&L is working to enhance shareholder value by increasing dividends. Ha pointed out, "As of the end of last year, the dividend per share was 750 won, resulting in a dividend yield of only 1.4% based on the current share price. There is a possibility that dividends will increase at the end of this year."

He stated, "Although a period of adjustment is likely to continue in the short term due to weak performance, expectations for earnings growth are likely to be recalibrated from the middle to the end of the first quarter next year. Taking into account T&L's long-term growth vision, we maintain a 'Buy' investment opinion."