[Click eStock] "Pumtek Korea, Potential for Quarterly Earnings Growth"

IBK Investment & Securities Estimates Consolidated Sales and Operating Profit of 219.9 Billion KRW and 30.5 Billion KRW Respectively This Year

[Asia Economy Reporter Kum Bo-ryeong] Despite the COVID-19 pandemic, Pumptec Korea is expected to achieve quarterly performance growth.

According to IBK Investment & Securities on the 12th, Pumptec Korea's consolidated sales and operating profit for this year are estimated at 219.9 billion KRW and 30.5 billion KRW, respectively. These figures represent increases of 25.4% and 13.1% compared to the previous year.

Kim Tae-hyun, a researcher at IBK Investment & Securities, explained, "Although expectations for standalone performance growth of Pumptec Korea are somewhat limited due to the impact of COVID-19, the improvement in sales of daily necessities containers such as toothpaste and cleaning agents from Buguk TNC, which have been recognized as consolidated results since the fourth quarter of last year, is expected to enable overall corporate performance growth."

In the first quarter, Pumptec Korea signed a strategic partnership with HCP, a global cosmetics container company with annual sales of approximately 500 billion KRW. HCP has factories and sales networks in North America, Asia, and Europe. Through this, it is expected that exports to previously weak markets such as Europe, Japan, and China can be expanded. In particular, since HCP does not produce pump-type products on its own, there is high anticipation for the expansion of pump product supplies to HCP.

Kim also noted that the financial structure is stable. He said, "Out of approximately 100 billion KRW in cash and cash equivalents, net cash excluding borrowings amounts to about 70 billion KRW, indicating a stable financial structure. Considering this, the current stock price burden is not significant." On the 11th, Pumptec Korea's closing price was 17,050 KRW.

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