[Click eStock] "VTGMP, Possible Value Upgrade with Success in Japanese Market"

On the 4th, IBK Investment & Securities analyzed that VT GMP is showing a valuation premium based on its success in the Japanese market.

Researcher Geonjae Lee of IBK Investment & Securities explained in a report on the same day, “GMP, established in 1986, is a company specializing in laminating equipment. It was listed on the KOSDAQ market in 1994 but decided to enter workout in 2012,” adding, “Four years after the workout decision, in 2016, the workout ended, and management control was transferred to the current management team, shifting the company’s main business from laminating to cosmetics.”

He analyzed that thereafter, VT GMP was able to quickly raise its recognition by signing BTS as an advertising model before the COVID-19 pandemic, but negative perceptions began to accumulate as the business diversified into cable TV, bio, and hydrogen sectors.

Researcher Lee said, “Although negative perceptions accumulated due to business expansion, meaningful results have appeared in the entertainment industry by acquiring Cube Entertainment, a KOSDAQ-listed company,” and added, “Recently, the company announced a public notice to spin off the laminating business, indicating a restructuring of non-core businesses, which is understood to be shifting investors’ views in a positive direction.”

He continued, “VT GMP quickly found a breakthrough in the Japanese market as the business environment in China became difficult,” and stated, “The main CICA line has secured stable sales and high recognition in the Japanese market, and it is understood that sales of the new product, the Needle Shot line, are expanding recently, which is judged to be causing a valuation premium.”

He also analyzed, “There is a high possibility of a valuation increase in line with the indie brand premium trend that is emerging like a storm in the domestic market,” and added, “Although the company, which generates 90% of its total sales overseas, may be somewhat unfamiliar domestically, it already generates over 90 billion KRW annually in Japan with its CICA line products.”

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