South Korea’s Aekyung Industrial Co. reported its operating profit in the second quarter more than doubled from a year earlier at 21.4 billion won ($19.1 million), the highest ever for the quarter, backed by strong cosmetics sales.
The household and personal care product maker said in a regulatory filing on Tuesday that its operating profit jumped 105.61 percent to 21.4 billion won in the second quarter ended June this year from the same period last year on a consolidated basis. Its net profit soared 118.50 percent to 16.2 billion won and sales were up 30.88 percent at 174.3 billion won over the cited period. All figures are the highest ever for the second quarter.
Brisk second-quarter earnings have led Aekyung Industrial to log a 61 percent on-year jump in operating profit to 43.2 billion won for the first half of this year. Net profit rose 72 percent on year to 33.5 billion won and sales grew 24 percent to 343.4 billion won.
Its shares finished Wednesday at 64,800 won, down 3.43 percent from the previous session.
Aekyung Industrial Co.`s ‘Age 20’s’ Essence Cover Pact and ‘Luna’ Long Lasting Foundation.
Aekyung Industrial attributed the solid performance to its cosmetics business. Thanks to its best-selling brands ‘Age 20’s’ and ‘Luna,’ cosmetics sales leaped 63 percent in the first half against the previous year. Beauty line contribution to total sales also has expanded fast, growing from 43 percent last year to 48 percent in the first quarter and then to 52 percent for the first half, exceeding that of household business for the first time.
To further boost its cosmetics business, the company launched a new cosmetics brand ‘FFLOW’ during the first half of this year and is readying to introduce another new cosmetics brand within this year, said an Aekyung Industrial official.
Market experts forecast the company to extend its growth momentum in the third quarter and onward on the back of its efforts to diversify sales network and up its global presence. Previously, the company relied mainly on the TV home shopping networks to market its cosmetics products but has made inroads into duty-free shops and overseas stores while widening its product lineups.
HI Investment & Securities in its latest report maintained its ‘buy’ recommendation for Aekyung Industrial and raised its price target to 93,000 won from 87,000 won.
By Kang Da-young and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]