Samsung Securities raised the target price for K-Beauty exporter SILICON2 to 71,000 won, a 16% increase from the previous target. The expectations are based on strong performance in Europe combined with a recovery in U.S. sales, suggesting that performance improved in the second quarter. The investment recommendation remains "buy."
On the 2nd, Samsung Securities projected that SILICON2 recorded a revenue of 282 billion won on a consolidated basis in the second quarter. This marks a 55% increase compared to 181.4 billion won in the same period last year, and the operating profit for the second quarter is estimated to have increased by 54.8% compared to a year ago, reaching 60.3 billion won.
Lee Ga-young, a researcher at Samsung Securities, noted, "After expanding the European subsidiary last year, revenue growth toward major multi-brand sales points (MBS) in various countries has gained momentum," adding that "by increasing the number of supplied brands such as MediCube, Dr.Althea, and Tirtir, we have entered a stage of increasing revenue per customer."
Samsung Securities also anticipated a gradual recovery in revenue from the U.S. market. Although brands like Memebox and COSRX opted for direct transactions with local distributors instead of using SILICON2 as a sales outlet, they have recently shifted their strategy to utilize SILICON2.
The researcher assessed that "the strong performance of the European subsidiary combined with the recovery in U.S. subsidiary sales is expected to yield solid profit growth in the second quarter," adding that "SILICON2, as an exporter in the global K-Beauty market, will solidify its position for the time being."