[Click eStock] "Yeonwoo, Benefiting from Cosmetics Market Recovery... Forecasting Record Quarterly Performance"

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 31st that it is raising the target stock price of Yeonwoo, a cosmetics packaging specialist company, to 32,000 KRW, considering the recovery period of the cosmetics market.

Park Jong-dae, a researcher at Hana Financial Investment, said on the day, "Based on overwhelming cosmetics container technology and pump container market share, it is expected that the domestic and international cosmetics market recovery, centered on China, will bring significant benefits," adding, "Due to the effects of last year's inventory/production business restructuring, profitability improvement is expected to be substantial."

Yeonwoo's consolidated sales and operating profit for the first quarter of this year are expected to reach 69 billion KRW and 4.8 billion KRW, respectively, marking the highest quarterly performance with growth of 11% and 80% compared to the same period last year. Domestic sales are expected to drive external growth with an 8% increase year-on-year, and export sales are projected to rise by 16%. Sales to major domestic brands have surpassed 2019 levels, and sales to small and medium-sized brands and OEM companies are also expected to increase significantly. Above all, export sales are evaluated to be recovering rapidly.

In the second quarter of this year, as the domestic and international cosmetics market recovery accelerates, especially centered on China, the peak season effect is expected to be greater. Major domestic companies A and L, which account for more than 30% of total sales, have strong brand power and business expansion in China, which is key to Yeonwoo's performance turnaround. Additionally, sales expansion to large buyers in the Americas business, which accounts for 25% of sales, is expected to play a role in raising the annual performance outlook for this year.

Researcher Park said, "The second quarter is the peak season with the largest sales volume, and since there are no holiday bonuses, the operating profit margin is the highest period," adding, "Consolidated sales and operating profit for the second quarter are expected to rise to approximately 78 billion KRW and 9.3 billion KRW, representing increases of 32% and 100% year-on-year, respectively."

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