Equity Analyst focused on Korea Stock Market

Thomas Yi

Equity Bottom-Up

<h2>"Enfant Terrible Offers Formidable Top-Line Growth and Market Diversification"</h2><ul>
<li>Specialized mask pack cosmetic maker JayJun Cosmetic (025620 KS) was founded in January 2015</li>
<li>In January 2018, the firm brought a new plant online with monthly capacity of 23mn packs, raising its total monthly capacity 35% from 17mn packs</li>
<li>JayJun's 2Q18 earnings should be much better, backed by a successful new product (ie, red, purple, and green ‘Honey Dew Masks’) and higher productivity of the new plant</li>
<li>JayJun is targeting 2018 revenue of KRW200–250bn and an operating margin of 25%. Recent consensus predicts sales of KRW222.9bn (implying 71.9% growth) and an operating margin of 25.2% (up 7.0%pt or 151.4%). Although JayJun is expected to trounce its peers with formidable YoY sales and earnings gains in 2018, the company trades at the sector’s lowest P/E</li>
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Stock Information: Share price(18/07/03) KRW 21,250/ Market Cap(18/07/03) KRW 563.4 bn/ Trading Volume (@60days) 1.05mn shares/ Historical price(52 weeks; Highest/Lowest) KRW 28,050/KRW 4,9300/ Absolute Return (3 month) -8.21%/ Major shareholders - FN Republic and others 17.1%, Jayjun Global and others 8.8%, treasury stock 1.2%
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"Enfant Terrible Offers Formidable Top-Line Growth and Market Diversification"
Specialized mask pack cosmetic maker JayJun Cosmetic (025620 KS) was founded in January 2015
In January 2018, the firm brought a new plant online with monthly capacity of 23mn packs, raising its total monthly capacity 35% from 17mn packs
JayJun's 2Q18 earnings should be much better, backed by a successful new product (ie, red, purple, and green ‘Honey Dew Masks’) and higher productivity of the new plant
JayJun is targeting 2018 revenue of KRW200–250bn and an operating margin of 25%. Recent consensus predicts sales of KRW222.9bn (implying 71.9% growth) and an operating margin of 25.2% (up 7.0%pt or 151.4%). Although JayJun is expected to trounce its peers with formidable YoY sales and earnings gains in 2018, the company trades at the sector’s lowest P/E

Stock Information: Share price(18/07/03) KRW 21,250/ Market Cap(18/07/03) KRW 563.4 bn/ Trading Volume (@60days) 1.05mn shares/ Historical price(52 weeks; Highest/Lowest) KRW 28,050/KRW 4,9300/ Absolute Return (3 month) -8.21%/ Major shareholders - FN Republic and others 17.1%, Jayjun Global and others 8.8%, treasury stock 1.2%



Shinwoo Co Ltd

CV Note: JayJun Cosmetic (025620 KS)