[Click e-Stock] "Dalba Global Diversifies Product Portfolio and Channels... Target Price Raised by 70,000 Won"

Triple-Digit Growth Rates in the US, Europe, and Greater China

On May 14, Kyobo Securities raised its target price for Dalba Global from 220,000 won to 290,000 won while maintaining its "Buy" investment rating.

Kwon Woojeong, research analyst at Kyobo Securities, said, "Dalba Global is diversifying its hero product lineup beyond its existing mist-focused SKUs to include sun cream, multi balm, and double cream, which is a positive development. The expansion of global channels is also favorable, and the triple-digit growth rates in Europe, North America, and Greater China in the first quarter were encouraging."

Dalba Global's consolidated sales for the first quarter reached 170 billion won, up 51% year-on-year, while operating profit was 45.1 billion won, exceeding market expectations by 18%. The operating profit margin (OPM) stood at 26%, remaining similar to last year due to more efficient marketing expenditures and improved cost ratios, and surpassing market forecasts.

Of this, overseas sales amounted to 117.7 billion won, an 85% increase compared to the same period last year. By country, sales grew by 67% in Japan, 192% in North America, 214% in Europe, and 124% in Greater China during the same period. Regarding the North American market, analyst Kwon commented, "Performance marketing is now in full swing, with early results being positive. The expansion of the product portfolio is also a favorable trend," adding, "For the second quarter, 8 billion won in reorders from Ulta and Costco are expected to be recognized."

Regarding the European market, he analyzed, "In Spain, Germany, and Italy, the new multi balm product lineup is generating sales at levels comparable to the mist serum. There are also plans to add several new offline sales channels in Europe this year."

On the Greater China region, he added, "It appears that a large number of new customers have been acquired through collaborations with major influencers. Unlike other K-beauty brands, brand recognition in Greater China is increasing, so momentum in China is also anticipated. After establishing the Chinese subsidiary in the first half of the year, both Tmall and offline sales are expected to expand."

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