[Click eStock] "VTGMP, Synergy Expected Between Existing and New Businesses... Target Price Set at 15,000 Won"

[Asia Economy Reporter Hyunseok Yoo] Hana Financial Investment analyzed on the 11th that VT GMP is gaining momentum through domestic demand in China. They newly issued a 'Buy' investment rating and a target price of 15,000 KRW.

VT GMP has succeeded in dominating the Chinese basic cosmetics market based on online distribution channels and Wanghong marketing. In addition to the existing Cica line, they have continued their growth by launching new lines, and the Progress line launched in February this year sold out its initial stock worth 7 to 8 billion KRW.

Jungki Lee, a researcher at Hana Financial Investment, stated, "Considering that the initial stock of the Cica line was 2 to 3 billion KRW, the Progress line is expected to record annual sales exceeding 31 billion KRW, which was the sales amount at the time of the Cica line launch."

Additionally, VT GMP operates a new business division, the media commerce business called K-Belly, and plans star performance projects, star collaborations and content businesses, as well as star photobook sales projects. The core content distribution network has already been secured through partnerships with local Chinese companies. The researcher emphasized, "Based on the star recruitment power and content planning ability proven through collaboration products with BTS, significant performance contributions are expected this year."

He explained, "Due to the growth of the existing Cica line, the launch of new lines, and the full-scale projects of K-Belly, VT GMP's performance this year is expected to increase by 95% and 134.1% year-on-year, with sales of 220.8 billion KRW and operating profit of 29.5 billion KRW, respectively," adding, "The synergy effect between the existing cosmetics business and media commerce will make this year the first year VT GMP aggressively targets the Chinese market."

This content was produced with the assistance of AI translation services.