[Click eStock] A New Market Opens for Sun Care Leader Kolmar Korea... Target Price Raised

On October 1, Eugene Investment & Securities maintained its "Buy" investment rating on Kolmar Korea and raised its target price from 170,000 won to 180,000 won, citing anticipated benefits from the U.S. Food and Drug Administration's (FDA) approval of a new sunscreen ingredient and expanding orders from indie brands.

Haeni Lee, a researcher at Eugene Investment & Securities, stated, "In June, the U.S. FDA added bemotrizinol to its list of over-the-counter (OTC) sunscreen ingredients, and it has been available for actual use since August. As this is the first new sunscreen ingredient allowed in the U.S. market in over 20 years, there will likely be a surge in demand for both new product development and formulation changes among U.S.-focused sun care brands."

She emphasized, "The key to winning orders will be the technology that maintains protection performance without white cast or stickiness. Kolmar Korea was the first in the industry to receive FDA OTC certification in 2013, established a dedicated UV research center in 2022, and holds about 70 related patents, placing it well ahead of the competition."

Lee continued, "Among Kolmar Korea's top 20 clients, the proportion of indie brand sales has risen to 70% as of 2025. Every time new K-beauty brands emerge, the potential customer base grows. In categories like sun care, where technological barriers are high, a proven partner is not easily replaced, which further strengthens the company's bargaining power."

She projected, "For the third quarter of this year, total sales are expected to increase by 22.0% year-on-year to 833.5 billion won, while operating profit is forecast to rise 63.5% to 95.3 billion won. Although the peak season for sun care has passed, continued orders in skin care will help domestic subsidiary sales surpass the levels seen in the second quarter."

Lee added, "Despite a reduction in the number of working days due to the Chuseok holiday, Kolmar Korea coped with demand by replacing outdated equipment and implementing additional shifts. The current forward 12-month price-to-earnings ratio (PER) has dropped to around 15.3 times, which increases the investment appeal."

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