[Edaily Reporter KIM YOON-JEONG ] Yuanta Securities Korea assessed that SILICON 2 Co.,Ltd.(257720)’s second-quarter operating profit exceeded market expectations by 18%, thereby demonstrating its growth potential through actual results. The firm analyzed that while Europe remained the largest revenue region, North American sales saw the most significant growth, driven by the expansion of offline channels. It maintained its “Buy” investment rating and target price of 56,000 won.

On the 18th, Lee Seung-eun, an analyst at Yuanta Securities Korea, stated regarding SILICON 2 Co.,Ltd., “Deferred revenue from Europe in the second quarter is expected to be resolved within the third quarter, and we believe North America and Latin America will continue their medium- to long-term growth momentum based on the expansion of offline channels and the stabilization of new subsidiaries.”
According to the analyst, SILICON 2 Co.,Ltd.’s second-quarter revenue reached 402.6 billion won, a 52% increase year-over-year. Operating profit rose 59% to 83.0 billion won, exceeding market expectations of 70.5 billion won by 18%. The operating profit margin stood at 20.6%.
The strong exchange rate had a positive impact on profitability. The gross profit margin rose 2 percentage points from the previous quarter to 32%. Regarding this, the analyst noted, “This was the result of the persistently strong exchange rate environment during the second quarter, which favorably impacted the company’s business structure with a high proportion of exports.”
Although transportation costs rose 73.9% year-over-year, accounting for 3.4% of revenue, the selling, general, and administrative (SG&A) expense ratio remained unchanged from the previous quarter at 11.4% due to reductions in commission expenses and advertising and promotional costs.
By region, Europe accounted for 43% of total revenue, maintaining its position as the largest market. Revenue in Europe increased by 61.6% year-over-year. North America recorded the highest growth rate among all regions, rising 78.3% thanks to the expansion of offline channels such as Ulta Beauty and Target, and its share of total revenue also increased to 22%. With the exception of the Middle East, where revenue fell by 7.1% due to the impact of the war, all seven other regions posted growth.
By brand, Medicube maintained the top spot for three consecutive quarters. Since resuming its collaboration, CosRX has climbed one rank each quarter starting in the third quarter of 2025.
Analysts note that the company’s financial health has also improved. While inventory assets increased by 33% from 339.3 billion won in the first quarter to 451.0 billion won in the second quarter due to proactive inventory procurement, accounts payable decreased by 20% from 77.1 billion won to 61.4 billion won over the same period. The debt-to-equity ratio fell from 70.9% in the first quarter to 40% in the second quarter.
During a conference call, SILICON 2 Co.,Ltd. reaffirmed its guidance for this year—1.5 trillion won in revenue, representing 18% year-over-year growth—which was initially presented at the beginning of the year, for the second half of the year as well. The analyst stated, “This is interpreted as a conservative outlook that takes into account the exchange rate sensitivity of the gross profit margin as well as uncontrollable variables such as the situation in the Middle East and exchange rates.”
Profitability in the third quarter is expected to remain at a level similar to that of the second quarter. The analyst explained, “While there is room for margin improvement in the third quarter, driven by easing freight rate pressures and customs duty refunds, rising depreciation expenses and exchange rate uncertainty could hold it back, so we expect margins to remain at a level similar to the second quarter.”