[Featured Stock] J2K Bio, the Hidden Power of K-Beauty... 'Captivating the World with Bio Materials'
J2K Bio, a developer of cosmetic raw material ingredients, is showing strong performance. As the popularity of K-beauty continues, Silicon Tower is hitting record highs again. It appears that warmth is spreading throughout the entire cosmetic value chain.
As of 10:50 AM on the 19th, J2K Bio was trading at 33,000 KRW, up 1,100 KRW (3.45%) from the previous trading day.
J2K Bio has developed over 2,000 natural and bio materials and solvents based on new natural product technologies and fermented microorganisms. Using ingredients extracted from natural products and fermented microorganisms, they supply about 300 client companies with functional cosmetic new materials for whitening, anti-wrinkle, UV protection, and sebum control.
Seonjae Heo, a researcher at SK Securities, explained, "Since 2022, we have started joint development of bio-based cosmetic raw materials with major brand companies such as Amorepacific and LG Household & Health Care." He added, "The new products are expected to begin supply in the second half of this year." He continued, "Sales growth toward domestic and international indie brands will accelerate further," and "We have newly secured overseas ODM clients in Europe, Japan, and Southeast Asia by establishing our own skin clinical testing center."
He emphasized, "Sustained performance growth will continue through proactive capacity expansion," and "As the only publicly listed vendor supplying CosRx, which leads the K-beauty market, it is reasonable to assign a premium." He also expressed expectations that "the production capacity for snail cream/essence raw materials supplied to CosRx will more than double from 20 tons to 50 tons annually according to customer demand."
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Dohee Lee, a researcher at Korea Investment & Securities, analyzed, "J2K Bio is a specialized cosmetic raw material company with strengths in bio materials," adding, "Bio materials are mainly supplied exclusively to one brand in the form of providing strains, making substitution difficult." He further noted, "Unlike natural materials, supply difficulties can be avoided," and "the profit contribution is high." J2K Bio has strengths in bio materials.
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