Yuanta Securities Korea noted on the 15th that although the core channels in the United States are struggling, the increase in sales outside the U.S. is positive for SILICON2. It adjusted the target stock price downward from the previous 60,000 won to 42,000 won while maintaining an 'overweight' investment opinion. The closing price for SILICON2 on the previous trading day was 32,100 won.
Yuanta Securities Korea expects SILICON2's revenue and operating profit for the first quarter to increase by 26.7% and 32.4%, respectively, compared to the previous year, reaching 190 billion won and 39 billion won. This aligns with market expectations (operating profit of 38.8 billion won).
However, the sluggish sales in the United States continue. In the fourth quarter of last year, the sales of iHerb were 8.1 billion won, while Amazon's sales only reached 200 million won. This year, Amazon's sales are estimated to be virtually zero.
However, the increase in sales proportion from Europe and the United Arab Emirates (UAE) has become prominent, emerging as a new growth axis. Sales have increased in European countries such as Estonia, Spain, and Poland, and the establishment of branches in the UAE and Mexico scheduled for this year is expected to act as a long-term performance factor.
Lee Seung-eun, a researcher at Yuanta Securities Korea, said, "The resolution of the sunscreen over-the-counter (OTC) certification issue and the resumption of iHerb orders are showing a recovery trend, and the increase in sales outside the U.S. is also positive."
In terms of brands, the dependency on COSRX is decreasing, while emerging brands such as Medicube, Dr. Elsia, and Tirtir are growing steadily.
This researcher mentioned, "Recently, expectations of collaboration with Olive Young and favorable export data led to a 22% surge in stock prices over one week," adding, "If recovery in results is confirmed through the quarterly earnings announcement, a reevaluation up to a price-to-earnings ratio (PER) of 17 times could be possible."