Sangsangin Securities has lowered its target price for Dalba Global from 260,000 won to 240,000 won, considering the recent decline in stock prices across the cosmetics sector. The investment recommendation remains a 'buy.'
In a report released on the same day, analyst Song Ji-yeon projected that third-quarter sales in North America would reach 29.1 billion won and 17.6 billion won in Europe, reflecting decreases of 16.4% and 14.1%, respectively, compared to the previous quarter. This decline is attributed to the strengthening of the won and the impact of the Amazon Prime Day event in the second quarter.
Song noted that total sales are expected to be 165.3 billion won, with operating profit projected at 32.7 billion won, aligning with market consensus. Domestic sales are anticipated to be 40.2 billion won, while overseas sales are expected to reach 125.1 billion won.
Looking ahead, Song stated that Russia is expected to generate sales of 13.2 billion won, driven by diversification in online channels. The overall operating profit margin (OPM) is projected at 19.8%, with marketing expenses dropping below 20% and the share of B2B sales exceeding 40%, which is expected to enhance profitability.
Factors that had previously burdened performance are being resolved. Song mentioned that supply issues related to sun care packaging, which impacted second-quarter results, have been addressed since mid-August, and the number of suppliers has increased from two to four. Additionally, the sales gap caused by the renewal of Olive Young's flagship products has normalized. Expansion into overseas offline channels is also ongoing.
Currently, Costco in the United States plans to expand from 450 to 650 stores within six months, with initial orders estimated at around 10 billion won. Boots in the UK began sales in 105 stores in September, with initial sales responses reported to be positive.
* This article has been translated by AI.
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