KB Securities said on the 20th that Pumtech Korea is expected to benefit from the growth of the K-beauty industry led by indie brands. It also newly set a buy investment opinion and a target price of 61,000 won. The closing price of Pumtech Korea on the previous trading day was 45,900 won.
Pumtech Korea is a corporation that produces plastic pumps, containers, tubes, compacts, droppers, and sticks. Seong from the Research Institute noted, "As the influence of social media (SNS) and video platforms expand, various indie brands are emerging, and the export countries are also diversifying. Since indie brands rely on outsourcing for production and distribution, they benefit from Pumtech Korea."
He estimated that Pumtech Korea's revenue and operating profit this year will be 378.6 billion won and 56.7 billion won, respectively. This represents an increase of 12.2% and 17.1% compared to the previous year.
Seong noted that Pumtech Korea has a diverse range of products and clients. Last year, the revenue share by product was 41% for pumps and containers, 23% for tubes, 16% for compacts, and 14% for sticks. The revenue share by client was 59% for indie brands, 13% for domestic large corporations, 23% for overseas clients including Japan, and 4% for Japan.
The fact that Pumtech Korea has more than 5,000 proprietary molds was also noted as a positive factor. Seong explained, "The models made with proprietary molds have their intellectual property rights (IP) assigned to Pumtech Korea, allowing them to sell to various clients." He added, "Currently, 76% of Pumtech Korea's revenue comes from proprietary molds, and the automation rate reaches 70%."