[Edaily Reporter Lee Hye-ra] On the 9th, Hana Securities stated that #Silicon2 is continuing its growth momentum in the European market and is emerging as a key beneficiary of the global expansion of K-Beauty. The firm initiated coverage with a "Buy" rating and a target price of 52,000 won.

Park Jong-dae, an analyst at Hana Securities, stated in a report released that day, “Silicontu is currently playing a leading role in the expanding momentum of K-Beauty in Europe.” He added, “Considering the potential for expansion into Latin America, the Middle East, and the Commonwealth of Independent States (CIS) region, including Russia and Belarus, the current stock price is significantly undervalued.”
Analyst Park highlighted Silicon2’s past performance to forecast its future growth potential.
"The company posted first-quarter earnings that exceeded market expectations," Park said. "In particular, European sales reached 161.8 billion won, a 99% increase year-over-year, driving growth." He continued, "The company has once again demonstrated its solid position in the European market," explaining that "the strong performance of new brands such as Dr. Elcia and BioDuns, alongside established brands like Medicube and Chosun Beauty, was particularly notable."
He projected that the growth momentum would expand further in the second quarter. The analysis suggests that sales in key regions such as Europe and the U.S. will continue to rise, and the Middle East and Asia regions are also expected to shift into growth mode. He assessed, “The increase in second-quarter sales is expected to be greater than that of the first quarter,” adding, “The performance of new brands such as Centellian24 and Sallymax is also positive.”
Concerns regarding a decline in profitability were deemed limited. Analyst Park noted, “While the gross profit margin has declined slightly due to expanded discount sales during the initial phase of our European expansion, this is a natural phenomenon observed in the early stages of a business,” and predicted, “We expect to maintain an annual gross profit margin of over 30% and an operating profit margin of 15–20%.”
He added, “Despite high sales growth and profit improvement, the current stock price is only at a 12-month forward price-to-earnings (P/E) ratio of 7,” noting that “this is a valid range for buying at a low price.”