[Click eStock] "Silicon Two, Q3 Peak Season Results Up... Buying Opportunity at Lows"

On September 26, Kiwoom Securities recommended buying Silicon Two at its current low, stating, "Earnings are expected to improve, driven by the peak season in the third quarter and increased demand in new growth regions such as Europe and Asia."

Jo Sojeong, a researcher at Kiwoom Securities, projected that Silicon Two’s sales in the third quarter of this year would reach 290.8 billion won, up 56% from the same period last year, and that operating profit would rise 45% to 61.8 billion won, resulting in an operating margin of 21%. This is in line with market expectations.

In particular, as major retailers in the European market begin to carry Silicon Two’s products in earnest, sales are expected to reach 118 billion won, a sharp 175% increase year-on-year. The number of countries trading with the company has expanded to 50, with remarkable growth in the United Kingdom, France, and Estonia.

North American sales are also expected to reach 53.8 billion won, up 20% from the previous quarter, thanks to increased orders from major retailers ahead of the year-end peak season and the resolution of tariff uncertainties. The launch of the Cosrx haircare line, along with the strong performance of brands such as Joseon Beauty and Medicube, is seen as a key driver of growth.

Sales in the Middle East are projected to reach 28 billion won, up 44% from the previous year. Researcher Jo noted, "Growth may be slower than expected due to customs clearance delays and weakened consumer sentiment caused by the impact of war."

Due to the characteristics of its distribution channels, Silicon Two tends to reflect peak season performance earlier than brand companies. Researcher Jo explained, "Since we can get an early glimpse of the fourth quarter peak season for brand companies, the market is likely to focus on the company’s third quarter results," adding, "Thanks to robust demand for K-beauty, the growth trend in key regions such as North America and Europe is expected to continue in the third quarter." She further forecast, "With major shopping events such as Amazon Prime Day and Black Friday scheduled from October, and as the full-fledged shopping season begins, investor sentiment is also likely to recover."

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