[Click eStock] "Pumtek Korea Expected to Exceed Market Forecast in Q3"

Hana Securities analyzed on the 28th that Pumtec Korea is expected to achieve results exceeding the market forecast for the third quarter. No investment opinion or target price was provided.

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Hana Securities expects Pumtec Korea to record sales of 84.3 billion KRW and operating profit of 12.2 billion KRW in the third quarter, representing increases of 19% and 31% respectively compared to the same period last year. Eunjeong Park, a researcher at Hana Securities, said, "Sales in the separate (pump) division are expected to achieve the highest quarterly performance," adding, "It is the first time since the company's founding that sales in the peak season (second quarter) have been surpassed in the third quarter."

She analyzed, "The third quarter was particularly unfavorable in terms of the number of business days compared to the previous quarter," and added, "The order environment remains favorable, with various brands exchanging orders and the volume of orders increasing." She emphasized, "Pumtec Korea was able to secure a diverse customer base thanks to its wide lineup, trendy product development capabilities, and active sales force, which are factors for sustained growth."

Hana Securities expects Pumtec Korea to continue growing. She explained, "The atmosphere for expanding orders is still intact," and added, "It appears that the number of brands attempting and expanding overseas expansion is increasing through the successful case of K-Beauty, which saw a sharp increase in sales."

She said, "Due to Pumtec Korea's development capabilities considering both functional and aesthetic aspects, even global brands are showing an increasing trend in orders," and added, "Pumtec Korea is preparing for the construction of its 4th factory (separate) aiming for completion in July next year, and the aluminum tube factory (Buguk) is scheduled to be completed this month."

Researcher Park forecasted, "The full-scale production start of the expanded factory is expected in 2025, and Pumtec Korea's 2025 performance is projected to be consolidated sales of 370 billion KRW and operating profit of 55.2 billion KRW, representing increases of 12% and 17% respectively compared to the previous year."

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