[Click e-Stock] "Buy Once, Buy Again... d'Alba Global Expected to Rise 30% More"

Samsung Sets Target Price at 270,000 Won, Recommends 'Buy'

On June 25, Samsung Securities initiated coverage on d'Alba Global, stating, "The company is diversifying its product lineup beyond hit items, leveraging a high repurchase rate and strong brand trust." The target price was set at 270,000 won, which is 30.1% higher than the current share price, with a 'Buy' investment rating.

Jung Donghee, an analyst at Samsung Securities, commented on d'Alba Global, saying, "Among listed K-indie brands, the company boasts the most balanced regional sales mix and delivers over 50% annual growth each quarter." He added, "By using premium ingredients and positioning itself as an all-in-one product provider, d'Alba Global achieves a higher ASP (Average Selling Price) compared to competitors and excels in securing margins that impact long-term cash flow through tight management of manufacturing costs and distribution channels."

d'Alba Global has focused its marketing on 'premium vegan' and 'luxury ingredient' products, starting with Japan in 2018, Russia in 2019, and Southeast Asia in 2020. Since 2022, the company has expanded sales through North American Amazon and TikTok Shop, grown its offline channels, and, in 2023, experienced growth driven by the Chinese online market—leading to a more diversified regional portfolio.

Analyst Jung explained, "Given the fast-changing consumer goods market, the company prioritized increasing repurchase rates among existing customers over indiscriminate expansion. As a result, from 2020 to last year, it has achieved sustained annual growth with a CAGR of 61%." He also noted, "In terms of SKUs, the company is expanding from its hit mist category into sun creams and multi-balms, and is considering launching a new brand."

Both revenue and operating profit growth are expected this year. Jung noted, "This year, growth is expected to accelerate with an increase in the number of products in Amazon's Top 100 in the North American and European markets, as well as expansion into offline channels such as Costco and Ulta. Sales are projected to grow by 45% and operating profit by 61%."

He added, "Although there were concerns about a slowdown in mist sales growth following the year-end promotions reflected in the fourth quarter of last year, the first quarter of this year still showed steady growth of around 29% compared to the same period last year. The initial VC investors' shares have mostly been digested following the listing, and as of last month, even the one-year lockup portion (5.2%) has been lifted, meaning short-term overhang issues are limited."

This content was produced with the assistance of AI translation services.