[Click eStock] "VT GMP, a Hidden Cosmetic Small Giant"

SK Securities analyzed on the 1st that VT GMP is expected to see a revaluation of its cosmetics business value through the spin-off and sale of non-core businesses.

Heo Seon-jae, a researcher at SK Securities, stated, "The reason to focus on VT GMP now is that the issue of unclear business identity, which has been a major drawback so far, is expected to be resolved through the spin-off and sale of GMP's laminating division, which is a deficit business," and analyzed, "A revaluation of business value through escaping the complex corporate structure is expected."

He emphasized the need to pay attention to the fact that the core cosmetics business, similar to The Witch Factory, which recently succeeded in public offering, is achieving solid brand establishment in Japan and growing at an annual rate of over 30%.

Researcher Heo explained, "VT GMP has already completed the establishment of dense offline distribution channels with more than 15,000 locations including Japanese drugstores and convenience stores, as well as major online channels such as Qoo10, Rakuten, and Amazon. Therefore, it is now entering a full-scale performance growth phase through steady new product launches that can increase the average spending per customer," adding, "Attention should be paid to the new CICA Riddle Shot (essence) product scheduled for release in July this year."

This product is expected to make a significant contribution to performance as its average selling price (ASP) is at least 50% higher than the existing core product, the mask pack, and pre-sale reactions have been very positive.

He predicted, "VT GMP's consolidated sales and operating profit this year will be 270.4 billion KRW and 33.1 billion KRW, respectively, increasing by 12.6% and 40.1% compared to the previous year," and added, "It is now reasonable to consider VT GMP as one of the fully-fledged domestic small and medium-sized cosmetics companies."

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