[Edaily Reporter Shin Ha-yeon ] On the 28th, Value Finder, an independent research firm, analyzed #Delicious, stating that the operating leverage effect is now fully taking hold following the company’s return to profitability last year, and that medium- to long-term growth is expected through expansion into overseas markets and the launch of new services. The firm did not provide an investment recommendation or a target price.

Ji-hoo, a senior researcher at Value Finder, stated regarding DILLI ILLUSTRATE INC., “We believe the company has entered a stable profit phase as the effects of operating leverage have begun to take full effect following its turnaround in 2025.”

DILLI ILLUSTRATE INC., a business-to-business (B2B) fashion platform founded in 2011, went public on the KOSDAQ market this year. Through its proprietary platform, “Shinsang Market,” it connects Dongdaemun wholesalers with retailers nationwide. As of the first half of this year, revenue breakdown was 72.1% from the wholesale marketing platform, 26.4% from retail business solutions, and 1.5% from other sources, with the majority of revenue generated through Shin Sang Market.

Shinsang Market is a platform that has digitized the transaction structure of the Dongdaemun fashion market, which was previously centered on offline and personal networks. When wholesalers register product images, prices, colors, sizes, and other details, retailers can view this information in real time and complete orders and payments online.

Currently, Shin Sang Market has more than 8,000 wholesale partners and over 200,000 active retail members annually. According to company data, the platform’s average daily user penetration rate among fashion B2B platforms stands at 97%, and its cumulative transaction volume has exceeded 5 trillion won. The number of approved wholesale members rose from 2,000 in 2016 to 23,000 in the first half of this year, while the number of approved retail members increased more than 20-fold during the same period, from 17,000 to 400,000.

Financial performance is also showing a clear upward trend. Delicious’s consolidated revenue for the first half of this year reached 17.6 billion won, a 19.5% increase compared to the same period last year, while operating profit surged 9,770% to 3.2 billion won. The operating profit margin stood at 18.2%. This means the company has already more than doubled last year’s full-year operating profit of 1.6 billion won in just the first half.

Analysts note that the pace of profitability improvement is accelerating as reductions in fixed costs align with revenue growth. Since 2022, Delicious has been cutting fixed costs through platform investments, infrastructure streamlining, and optimized space management. As of last year, the contribution margin had risen to 81%.

Senior Researcher Ji explained, “It is evident that the operating leverage effect resulting from revenue growth is now fully materializing,” adding, “Operating revenue from the platform business has grown at an average annual rate of over 20% since 2022, and during the same period, the business successfully turned a profit, demonstrating simultaneous growth in scale and improvement in profitability.”

There is also potential for further monetization of advertising and subscription services within the platform. The average monthly advertising revenue per advertiser (ARPU) is projected to increase from 340,000 won in 2021 to 760,000 won this year. The number of advertisers spending over 2 million won per month on advertising has also grown at an average annual rate of 28.5% since 2021.

In contrast, subscribers to the “Shinsang” membership account for less than 30% of Shinsang Ad advertisers, while “Plus” membership subscribers represent less than 10% of domestic retailers. Senior Researcher Ji noted, “We believe there is ample room to expand subscription services targeting existing customers.”

Overseas expansion was also cited as a medium- to long-term growth driver. Following the launch of shipping to Japan in 2022, Delicious expanded into Taiwan and Hong Kong this year and currently provides Shin-Sang delivery services to 91 countries worldwide. The strategy moving forward is to attract overseas retailers to Shin-Sang Market, connecting products from Dongdaemun wholesalers with new demand, and, in the long term, integrating overseas suppliers into the platform as well.

Senior Researcher Ji predicted, “If overseas suppliers are integrated into the platform, ShinSang Market is expected to expand its business scope from a domestic B2B platform centered on Dongdaemun to a global fashion B2B platform,” adding, “How much overseas demand can be expanded beyond the domestic market, which has entered a mature phase, will be a key factor in medium- to long-term growth.”

The company is also preparing to launch a fashion-specific Software-as-a-Service (SaaS) business. It plans to expand its services to include warehouse management (WMS), order management (OMS), review management, and content creation by leveraging the product and transaction data, as well as the customer base, secured through its existing platform.

Senior Researcher Ji noted, “As we are simultaneously expanding the delivery of new global products and acquiring overseas retail members, we expect new revenue streams to gradually increase based on our existing platform business.”