PNK Skin Clinical Research Center, Expected Profit Margin of 30% This Year

[Financial News] "PNK Skin Clinical Research Center's sales this year are expected to reach 24 billion KRW, a 35% increase from the previous year."
Kim Hye-mi, a researcher at Sangsangin Securities, stated in a report on the 27th that "with the increase in sales this year, the operating profit margin will be around 30%."
PNK focuses on human application tests to verify the safety and efficacy of various products, including cosmetics, health functional foods, and beauty devices. Previously, sales were mainly generated from skin application products, but recently, the scope of testing has expanded to general healthcare consumer goods, accelerating growth.
Researcher Kim said, "Especially with the expansion of exports by domestic indie brand cosmetics companies, the K-beauty industry is gaining attention in the global market," and "the diversification of entry regions, along with the expansion into related industries such as beauty devices and health functional foods, is acting as an additional growth driver for PNK."
She added, "Not only are existing trading companies actively launching new products, but the continuous entry of new companies is also positive," and "Furthermore, with the expansion of overseas entry by clients, the proportion of overseas business, including the preparation of English reports and acting as an agent for FDA registration, is also increasing."
PNK's sales in the first quarter of this year were 6.5 billion KRW, a 54% increase from the same period last year. During the same period, operating profit increased by 192% to 1.9 billion KRW. Both sales and operating profit were the highest on a quarterly basis.
Researcher Kim expected PNK's annual sales to reach 24 billion KRW this year, a 35% increase from the previous year, with an operating profit margin of around 30%.
She said, "Although the intensity of competition has intensified compared to the past due to the increase in similar companies, PNK's long-standing experience and extensive big data accumulated based on various domestic and international clients, and the category expansion using it, are differentiated strengths."
She added, "With a total capacity of 34 billion KRW, it is possible to respond to increasing orders," and "Achieving the break-even point (BEP) of the subsidiary K-Onirika this year will also positively affect performance improvement."
Researcher Kim judged that PNK's possession of 70.7 billion KRW in cash equivalent to its market capitalization and low valuation considering net income are attractive. She also noted that there is a need to pay attention to the possibility of overseas mergers and acquisitions (M&A) in the future.

butter@fnnews.com Kang Kyung-rae Reporter