KB Securities announced on August 13 that it has raised its target price for Pumtech Korea from 55,000 won to 74,000 won, an increase of 34.5%, citing the resolution of uncertainties related to the expansion of its fourth factory and ongoing demand growth driven by the global spread of K-Beauty. The investment recommendation remains a 'buy.'
Seong Hyun-dong, a researcher at KB Securities, stated, "The issues surrounding the expansion and operation of the fourth factory that had been weighing on the stock price in the first half of 2026 have been resolved sequentially, alleviating uncertainties regarding long-term growth." He also noted that the company has positively managed the rising prices of key raw materials, such as resin, due to the war, by passing those costs onto consumers.
Pumtech Korea reported consolidated revenue of 116.8 billion won and an operating profit of 21.7 billion won for the second quarter, marking increases of 10.8% and 11.4%, respectively, compared to the same period last year. The operating profit reached a record high for a quarter, exceeding both KB Securities' estimates and market consensus. The growth in revenue was attributed to increased demand from the global expansion of K-Beauty and the supply boost from the factory expansion, benefiting both major cosmetics companies and indie brands.
Looking ahead, KB Securities anticipates continued improvement in performance for the second half of the year, projecting revenue of 249.6 billion won and operating profit of 43.3 billion won. The price increase in the pump division, which began in June, is expected to be fully reflected, and the addition of assembly equipment is likely to resolve production bottlenecks. The sixth factory is expected to be completed in the third quarter and operational in the fourth quarter, which should gradually reduce the gap between orders and actual performance.
* This article has been translated by AI.
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