[Click eStock] "Seonjin Beauty, a Cosmetic Material Company Expected to Grow in Korea, China, and the US"

Independent research firm FS Research analyzed on the 16th that Seonjin Beauty Science is expected to continue growing in Korea, the United States, and China, with a significant improvement in profit margins this year. No investment opinion or target price was provided.

FS Research expects Seonjin Beauty Science to benefit from the implementation of the U.S. Cosmetics Modernization Act (MoCRA).

Hwang Se-hwan, a researcher at FS Research, said, "The benefits for manufacturers certified by the FDA under MoCRA seem certain," adding, "Among Asian cosmetic ingredient companies, only Seonjin Beauty Science and Japan's Company T have FDA certification."

He explained, "The main product, inorganic sunscreen ingredients, is expanding its use as an eco-friendly sun care material," and "the all-weather material Microbead is also being used in various cosmetics."

Growth in China is also anticipated. He said, "Unlike Korean brand companies that have struggled in China in recent years, Seonjin Beauty Science supplies raw materials," and "since 2016, Seonjin Beauty Science has shown a high compound annual growth rate (CAGR) of 20.3% in the Chinese market."

He emphasized, "Currently, materials are supplied to all top 10 sun care brands in China, and high growth of over 25% is expected this year as well."

Growth is expected not only overseas but also domestically. He stressed, "In Korea, with the completion of the original design manufacturing (ODM) factory next year, full-scale business expansion is anticipated," and "the company's own business-to-consumer (B2C) brand is expected to enter Olive Young by May this year."

FS Research forecasted that Seonjin Beauty Science's sales and operating profit this year will reach 82.7 billion KRW and 13 billion KRW, respectively, representing increases of 14% and 44% compared to the previous year. He said, "Profitability is significantly improving due to the rising proportion of high-margin cosmetic ingredients and operational efficiency of the factory," adding, "The expected price-to-earnings ratio (PER) for this year is still at about 11.7 times."

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