[Click eStock] "Seonjin Beauty Science, FDA-Recognized Eco-Friendly K-Beauty Leader"

by Jang Hyowon

Published 19 Jun.2023 08:20(KST)

Updated 24 Jul.2023 23:18(KST)

open/close

Hana Securities analyzed on the 19th that Seonjin Beauty Science is an eco-friendly global company recognized by the U.S. Food and Drug Administration (FDA) as the next-generation K-Beauty leader.

Kim Doohyun, a researcher at Hana Securities, explained in a report on the same day, “Seonjin Beauty Science is a cosmetics specialty material company with outstanding technological capabilities. Although more than 85% of its sales come from exports, it is not concentrated in any specific country, limiting risks related to issues with particular countries.”

Additionally, Researcher Kim predicted, “The company has secured both global high-end brands and global OEM/ODM companies as clients and is continuously expanding its SKUs, fully benefiting from the growth of the cosmetics industry.”

Seonjin Beauty Science owns the first domestic material factory to pass the FDA on-site inspection with a flawless record (NAI, No Action Indicated). It is the only one with a flawless record in East Asia. Furthermore, based on a solid overseas sales network, it has established a strategic partnership with DSM, a global leading company with annual sales of approximately 9 trillion KRW, and is trading with all top 10 local brands in China for its main material, sunscreen.

Seonjin Beauty Science’s consolidated performance this year is expected to reach sales of 80.6 billion KRW and operating profit of 10.3 billion KRW, increasing by 25.2% and 93.2% respectively compared to the previous year. Researcher Kim stated, “The company has strengths in eco-friendly materials preferred by customers, and structural growth within the cosmetics industry is expected. It has secured Chinese local brands as clients, so it is also expected to benefit from the Guochao (patriotic consumption) trend in China.”

Moreover, he said, “With benefits from the indie beauty boom in the U.S. and top-line growth through continuous expansion of SKUs for European high-end brands, along with the full-scale operation of smart factories leading to rising profit margins, the company is judged to have high investment attractiveness.”