On the 25th, Hanwha Investment & Securities analyzed that sales growth is confirmed centered on the initial entry countries for iFamilySC. It raised the target price from the previous 29,000 won to 34,000 won and maintained a 'buy' investment opinion. The closing price of iFamilySC on the previous trading day was 22,950 won.
In the second quarter of this year, iFamilySC's consolidated revenue and operating profit were 57.7 billion won and 7.2 billion won, respectively. This indicates increases of 17.7% and 3.2% compared to the previous year.
Han Yu-jeong, a researcher at Hanwha Investment & Securities, said, "Excluding the expanded losses in the wedding and other divisions, the cosmetics division achieved the highest sales ever and showed the most significant performance growth among listed color cosmetic brands."
Hanwha Investment & Securities projected that while competition is intensifying not only in Korea but also in major overseas countries, and expenses are increasing due to the expansion of pop-up and permanent store operations, the operating profit margin, which had approached 20% in the past, could stabilize at mid-10% levels.
However, overall growth is expected to continue. A researcher noted, "With the entry into U.S. cosmetics retailer Ulta Beauty this month and the expansion of sales in major online channels like Amazon and TikTok, revenue in the Americas is growing every quarter, and the entry into new European countries has been fully underway since the end of last year, contributing to continuous revenue growth in Europe as well."
It is also expected that issues related to excess inventory, which emerged since the first half of last year due to changes in contract structures with major distributors, will gradually be resolved.
A researcher emphasized, "Despite the fact that no Korean color cosmetic brand has recorded significant results in the Western market due to differences in makeup methods and cultures, iFamilySC has been pursuing a direct entry approach when entering new countries. Although the expansion has been somewhat slow, the sales growth is gradually being confirmed."
He continued, "Even though the competition intensity in existing markets like Korea and Japan is at its peak, a steady position is being proven, and problems such as inventory and distribution structures are being resolved sequentially."