MERITZ Securities analyzed on the 13th that SILICON2 is showing rapid global regional expansion in Europe and the Middle East. Accordingly, the investment opinion was changed to 'buy', and the target price was raised from 42,000 won to 48,000 won, an increase of 14.2%. The previous day's closing price of SILICON2 was 40,600 won.
SILICON2 recorded sales and operating profit of 245.7 billion won and 47.7 billion won, respectively, in the first quarter of this year. This represents an increase of 64% and 62% compared to the same period last year. Park Jong-dae, a researcher at MERITZ Securities, said, 'Sales in the U.S. region have recovered to 45 billion won, alleviating uncertainties about performance' and noted, 'In particular, the significant increase in sales in Europe has acted as the main factor for performance improvement.'
Researcher Park analyzed, 'Europe is expanding its territory into Western Europe and Eastern Europe, including Russia, as the logistics center in Poland becomes fully operational,' and noted, 'Unlike the U.S., Europe has limited competition both online and offline, and there are no strong players, so the growth rate, capacity, and visibility are rather greater than in the U.S.'
He also explained, 'In the Middle East, the establishment of a corporation and securing two logistics centers could significantly increase the scale of sales,' and predicted that 'SILICON2, as the largest cosmetics trade vendor in Korea, will continue to absorb the K-beauty global momentum for the time being.'