[Click eStock] "VTGMP to Spin Off Assets... Focus on Core Business"

Kiwoom Securities analyzed on the 31st that VT GMP will focus on its core businesses of cosmetics and entertainment through a physical division.

VT GMP operates various businesses including cosmetics, album planning, and laminating. Most of its separate performance comes from the cosmetics and laminating businesses, and it has Cube Entertainment as a subsidiary with a 38% stake.

Sojeong Cho, a researcher at Kiwoom Securities, stated in a report on the same day, “VT GMP announced plans for a physical division of its existing laminating business unit on the 15th, and the proposal for the division of the laminating business unit passed the shareholders' meeting yesterday. Going forward, the laminating business unit will be split and sold, and the company plans to focus on its existing core businesses of cosmetics and entertainment.”

VT Cosmetic is VT GMP’s cosmetics brand company. As of last year, about 90% of its total sales were from exports, with 90% of that to Japan, 8% to China, and the remainder to other overseas countries. In particular, the Cica line has gained great popularity in Japan, showing steady growth.

Researcher Cho analyzed, “Of VT Cosmetic’s sales of 26.1 billion KRW in the first quarter of this year, sales in the Japanese region were 21.7 billion KRW. Although sales decreased due to poor performance in the Chinese market, the largest market, Japan, maintained growth mainly through offline channels.”

He forecasted that VT Cosmetic will record sales of 149.4 billion KRW and operating profit of 20 billion KRW this year, representing increases of 25% and 6% respectively compared to the previous year.

He added, “One-time costs related to issues such as the change of the Japanese model (Takumi Kitamura) at the beginning of this year have all been reflected, and significant performance growth is expected from the second quarter. Japan is expected to show growth mainly through offline channels.”

Furthermore, he predicted, “Since the reopening last year, offline channels in Japan have continued to recover, and growth is expected this year through channel recovery and expansion of store entries. The release of an upgraded version of the core product, the Cica line, will support profit growth.”

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