1. What Happened? – Q2 Earnings Analysis
Sunjin Beauty Science’s Q2 2025 earnings significantly missed market expectations, with revenue at 21.6 billion KRW (-8.47% YoY), operating profit at 2 billion KRW (-47.37% YoY), and net income at 2.1 billion KRW (-36.36% YoY). The significant decline in operating profit and net income is expected to negatively impact investor sentiment.
2. Why Did This Happen? – Analyzing the Reasons for Poor Performance
Recent external factors such as rising raw material prices and increased exchange rate volatility, coupled with low operating rates in the microbead and sunscreen material segments, are analyzed as the main causes of the poor performance. The significant drop in operating profit margin despite the decline in sales requires further analysis.
3. What’s Next? – Future Outlook and Investment Strategies
While increased stock price volatility is expected in the short term due to the earnings shock, investors should focus on the mid-to-long-term growth potential of new businesses like ODM/OEM and clinical trials, and the steady growth of the cosmetic material business. However, risk factors such as exchange rate fluctuations, raw material price changes, and intensifying competition should be continuously monitored.
- Short-term Outlook: Monitor earnings improvement and operating profit margin recovery.
- Mid-to-Long-term Outlook: Focus on the successful establishment of new businesses and maintaining competitiveness in the cosmetic material business.
- Key Investment Points: Future earnings announcements, new business performance, and risk management.
4. Investor Action Plan
While Sunjin Beauty Science holds high growth potential, the current poor performance warrants caution. Investors should closely monitor future earnings improvements and the performance of new businesses, establishing a mid-to-long-term investment strategy that isn’t swayed by short-term stock price fluctuations.