[Market Focus] Silicon Two, Highlighted as the Biggest Beneficiary of K-Beauty Export Expansion, Surges 6.38%

"Middle East Sales to Begin in Earnest"

The stock price of Silicon Two, a cosmetics distribution company considered the biggest beneficiary of this year's K-beauty export expansion, is on the rise.

As of 10:00 a.m. on January 20, Silicon Two was trading at 42,500 won, up 2,550 won (6.38%) from the previous trading day.

On this day, Samsung Securities maintained its "buy" investment opinion and target price of 63,000 won for Silicon Two, stating, "It is the most comfortable stock to choose when buying momentum returns to the sector. It is the biggest beneficiary of the rebound in K-beauty exports to the United States, accelerated exports to Europe, and the start of exports to the Middle East this year."

In particular, the Middle East market is cited as this year's growth engine. In the fourth quarter of last year, the Middle East subsidiary's logistics warehouse began operations, and initial setup (logistics normalization) is currently underway. Since December of last year, monthly sales of 4 million dollars have been generated from this logistics warehouse, so full-scale sales growth is expected to begin in the first quarter of this year.

Lee Gayoung, a researcher at Samsung Securities, said, "In the United States, the strategy to diversify client supply channels has succeeded, mitigating seasonality. In the fragmented European market, there is significant potential to increase penetration by expanding the number of products handled," adding, "The valuation (stock price relative to corporate value) is also attractive compared to the high profit growth rate."