[Edaily Reporter KIM YOON-JEONG ] Korea Investment & Securities projected that SILICON 2 Co.,Ltd.(257720)’s second-quarter operating profit would meet market expectations, driven by continued solid sales growth, particularly in the U.S. and Europe. The firm analyzed that the key factors influencing future stock price trends will be the recovery of supply and demand in the cosmetics sector and on the KOSDAQ market. It maintained its “Buy” investment rating and target price of 60,000 won.

On the 13th, Kim Myung-ju, an analyst at Korea Investment & Securities, stated, “SILICON 2 Co.,Ltd.’s consolidated revenue for the second quarter of 2026 is expected to reach 390.3 billion won, a 47.1% increase year-over-year, while operating profit is projected to rise 35.8% to 70.9 billion won, in line with market expectations.” The operating profit margin is forecast at 18.2%.
By region, growth in the U.S. is expected to be particularly strong. U.S. revenue is projected to rise 25.0% quarter-over-quarter and 70.1% year-over-year. Revenue in Europe and Latin America is also forecast to increase by 61.3% and 25%, respectively, compared to the same period last year.
Analyst Kim explained, “The reason SILICON 2 Co.,Ltd.’s U.S. sales continue to show a consistently strong trend is that the pace of demand growth for K-Beauty in the U.S. is outpacing the pace of supply.” SILICON 2 Co.,Ltd. began operations at its Mexican subsidiary last month and plans to establish a Brazilian subsidiary within the year.
He assessed concerns about client attrition as excessive. Analyst Kim “Given the nature of the distribution business, client turnover is inevitable; however, there are simply too many K-Beauty brands for such concerns to act as a factor driving a further decline in SILICON 2 Co.,Ltd.’s valuation,” adding, “Just as in the past, SILICON 2 Co.,Ltd.’s top five brands will continue to change over time, and regardless of this, SILICON 2 Co.,Ltd.’s solid revenue growth will persist.”
Korea Investment & Securities projected that SILICON 2 Co.,Ltd.’s revenue would increase by 46.4% year-over-year this year and by 31.5% in 2027.
The firm also assessed the valuation as attractive. Korea Investment & Securities conservatively estimated SILICON 2 Co.,Ltd.’s gross profit margin (GPM) at 29.8% this year and 29.7% in 2027—lower than last year’s 31.1%. The current 12-month forward price-to-earnings ratio (PER) was analyzed at 9.7x.
Analyst Kim stated, “It is unfortunate that the market perceives Glenwood’s 6.7% stake as an overhang,” but added, “If supply and demand in the cosmetics sector and on the KOSDAQ market recover, we expect the stock price of SILICON 2 Co.,Ltd.—an indispensable player in the expansion of K-Beauty—to rebound quickly.”