PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Genic, the leading ODM maker of hydrogel sheet masks, has posted a clear recovery in both revenue and profit since turning profitable in 2024, driven by the global success of key client Beauty Selection's BIODANCE brand.
2025 consolidated revenue reached KRW 78.2bn with operating profit of KRW 15.0bn (19.1% margin), a sharp expansion from the 2022-2023 operating losses.
2Q26 revenue of KRW 49.2bn and operating profit of about KRW 10.0bn marked the strongest quarter to date, rebounding sharply from 1Q26.
A large share of revenue is concentrated in hydrogel mask orders from Beauty Selection's BIODANCE brand, creating customer-concentration risk.
The hydrogel category has high entry barriers due to limited automation and the skill required in production, a factor cited as supporting Genic's competitive position.
4Q25 saw revenue drop sharply and operating profit nearly vanish while net profit actually rose, an unusual pattern that highlights quarter-to-quarter earnings volatility.
Founded in 2001 and listed on KOSDAQ in 2011, Genic is a cosmetics manufacturer known for commercializing the world's first hydrogel sheet mask.
Its business spans in-house brand sales (once known for the 'Hayumi Pack') through home shopping and online channels, and ODM/OEM supply to domestic and global brands, with the latter, particularly hydrogel masks for global brands, now driving growth.
Its key client is Beauty Selection, whose BIODANCE brand outsources manufacturing of the 'BIO Collagen Real Deep Mask,' reportedly accounting for over half of Genic's revenue. That product has gained strong popularity through North American online channels, including reaching the top of Amazon's mask category.
Genic has demonstrated its manufacturing and quality-control capabilities by early-passing quality audits (Oddit) from global firms including L'Oreal, Estee Lauder, and Sephora, and is running multiple new projects with global brands on that basis.
Beyond hydrogel masks, the company is expanding into basic skincare products, and has secured placement at Kroger, a major US retailer, to broaden its own brand's North American distribution. Overseas operations are anchored by a wholly owned China sales subsidiary that serves as a base for East Asian market expansion.
In competitive terms, Genic is often compared with larger ODM players such as Cosmax, Cosmecca Korea, and Kolmar Korea, though the specialized hydrogel category is seen as having relatively high entry barriers due to limited production-line automation and the high skill level required.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩24.6B | ₩5.5B | 22.2% |
| 2025Q3 | ₩23.6B | ₩5.6B | 24.0% |
| 2025Q4 | ₩12.2B | ₩100M | 0.9% |
| 2026Q1 | ₩29.4B | ₩3.4B | 11.6% |
| 2026Q2 | ₩49.2B | ₩10B | 20.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩31.4B | -₩3.2B | -₩3.3B | −10.1% | −20.9% | 90.4% |
| 2023 | ₩28.1B | -₩4B | -₩4.4B | −14.3% | −38.2% | 102.9% |
| 2024 | ₩49.9B | ₩6B | ₩7.6B | 12.1% | 34.1% | 72.2% |
| 2025 | ₩78.2B | ₩15B | ₩18.9B | 19.1% | 46.0% | 37.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Genic's consolidated revenue contracted to KRW 31.4bn in 2022 and KRW 28.1bn in 2023, with operating losses of KRW 3.2bn and KRW 4.0bn respectively.
In 2024 revenue rose to KRW 49.9bn with operating profit of KRW 6.0bn (12.1% margin), marking a return to profitability, and in 2025 revenue expanded further to KRW 78.2bn with operating profit of KRW 15.0bn (19.1% margin) and owners' net profit of KRW 18.9bn, a substantial year-on-year jump in profit scale.
On a quarterly basis, margins actually improved from 2Q25 (revenue KRW 24.6bn, operating profit KRW 5.5bn, 22.2% margin) to 3Q25 (revenue KRW 23.6bn, operating profit KRW 5.6bn, 24.0% margin).
In 4Q25, however, revenue fell to about half of the 3Q level at KRW 12.2bn and operating profit shrank to roughly KRW 0.1bn, while owners' net profit actually rose to KRW 6.1bn, an unusual pattern suggesting a meaningful non-operating profit contribution that quarter.
In 1Q26 revenue recovered to KRW 29.4bn with operating profit of KRW 3.4bn (11.6% margin), and in 2Q26 the company posted its strongest quarter yet, with revenue of KRW 49.2bn, operating profit of KRW 10.0bn (20.3% margin), and owners' net profit of KRW 11.2bn.
Summed over the trailing four quarters (3Q25-2Q26), revenue totaled roughly KRW 114.3bn and owners' net profit about KRW 26.1bn, indicating the profit-improvement trend has continued on an annualized basis as well.
The balance sheet has strengthened in parallel, with equity growing from KRW 15.9bn in 2022 to KRW 41.0bn in 2025 and the debt ratio falling from 102.9% in 2023 to 37.7% in 2025.
Operating cash flow, which was only KRW 0.27bn in 2024, surged to KRW 20.7bn in 2025, a positive signal regarding the cash conversion of reported profit.
Korea's cosmetics exports set another record in 1Q26, rising 19% year-on-year to USD 3.1bn, extending the broader K-beauty export upcycle.
Hydrogel sheet masks in particular are viewed as a category where new entrants cannot quickly scale up supply, given the high production-line costs, labor intensity, and difficulty of automation and yield control.
Under this structure, analysts note that incremental demand tends to concentrate among incumbents with existing capacity, with Genic cited alongside Cosmax and Cosmecca Korea as beneficiaries.
Some market observers also expect increasing divergence within the cosmetics theme between names with verifiable export data and those without. Genic in particular was seen as likely to post relatively higher growth given a low base in the prior year.
There remains a possibility that larger ODM players could intensify price competition if they enter the hydrogel category in force, but for now a majority of hydrogel ODM makers are reported to operate at a loss or thin margin, which appears to limit the incentive for aggressive entry.
Mirae Asset Global Investments disclosed raising its Genic stake to 6.82% as of end-March 2026, indicating continued institutional interest in the name.
The company is expanding beyond hydrogel masks into basic skincare products, with related order volumes expected to be reflected progressively in second-half results. On the branded side, confirmed placement at Kroger, a major US retailer, is expected to support North American offline sales growth.
Hana Securities analyst Park Jong-dae noted in a June 5, 2026 report that Genic's mask exports grew 59% year-on-year in 1Q26 and continued growing more than 70% in 2Q26.
The same report projected 2Q26 revenue of KRW 39.6bn (up 61% year-on-year) and operating profit of KRW 7.6bn (19.2% margin), estimates that the company's actual confirmed 2Q26 results of KRW 49.2bn revenue and KRW 10.0bn operating profit ultimately exceeded.
That report also projected full-year 2026 revenue of KRW 134.5bn and operating profit of KRW 24.2bn as a record, though this remains an unconfirmed forecast rather than settled fact. New projects with flagship global brands are also underway, with related volumes expected to contribute meaningfully in the second half.
Production capacity, which stood at 6 million sheets per month in early 2025 and was expanded to 8.2 million sheets per month via a March 2025 expansion, may see further increases in response to order growth, a point that will need confirmation through future disclosures.
Given Genic's move from operating losses in 2022-2023 to profitability in 2024 and further profit expansion through 2025 and 1H26, the multiples at which the stock currently trades are being formed on a materially stronger earnings base than during the loss-making years.
Relative to net assets, the stock appears to trade at a wider premium than before the earnings recovery, suggesting the market is pricing in some expectation for the sustainability of the improved profit trend.
The company has paid no dividends to date, consistent with a capital allocation approach that prioritizes reinvestment and capacity expansion over shareholder returns for now.
Hana Securities suggested in a June 2026 report that the stock traded at a lower level relative to valuations typically associated with a hydrogel demand upcycle, though this reflects a point-in-time brokerage view that does not account for subsequent price and earnings developments.
The quarter-to-quarter volatility in earnings, including the 4Q25 period when operating profit and net profit moved in opposite directions, is also a factor worth weighing when interpreting valuation.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21
Beauty Selection's BIODANCE brand has become a global hit, topping the mask category on North American online channels such as Amazon, structurally boosting Genic's order intake.
Its track record of early-passing quality audits from global firms like L'Oreal, Estee Lauder, and Sephora has also translated into new brand project wins. Channel diversification is proceeding in parallel through basic skincare expansion and Kroger placement.
Hydrogel sheet masks are seen as a category where new competitors cannot quickly scale up supply due to limited automation and heavy skill and fixed-cost requirements. As a result, incremental demand may concentrate among a small number of incumbents with existing capacity, including Genic.
Many hydrogel ODM makers reportedly operate at thin margins or losses, which also limits the incentive for new entry.
Financial stability has improved markedly, with equity growing from KRW 15.9bn in 2022 to KRW 41.0bn in 2025 and the debt ratio falling from 90.4% to 37.7% over the same period. Operating cash flow also surged from KRW 0.27bn in 2024 to KRW 20.7bn in 2025, indicating that reported profit is being converted into cash. This suggests a growing internal capacity to fund future capacity expansion or new investment.
Beauty Selection's BIODANCE brand reportedly accounts for over half of Genic's revenue, meaning shifts in that brand's popularity or ordering policy could directly affect results. With such high dependence on a single brand, a cooling of the trend or the rise of a competing brand could sharply reduce order volumes.
While diversification through projects with multiple global brands is underway, their weight as an alternative revenue pillar is still being tested.
In 4Q25, revenue fell to roughly half the 3Q level and operating profit nearly disappeared, illustrating significant quarter-to-quarter swings. If revenue tends to concentrate in specific quarters due to order timing or inventory adjustments, similar volatility could recur going forward. This volatility warrants caution when interpreting short-term results separately from the annual trend.
If large ODM players such as Cosmax and Cosmecca Korea move aggressively into the hydrogel category, renewed price competition is possible.
The fact that the hydrogel ODM industry broadly operates on thin margins is both an entry barrier and a signal that margin defense is not necessarily easy if industry conditions reverse.
There is also a risk that a race to add new capacity in response to expanding global demand could eventually tip the market toward oversupply.
A substantial portion of revenue is concentrated in orders from a small number of brands, particularly BIODANCE hydrogel masks. A sales slowdown, order reduction, or contract change involving that brand could have an immediate and material impact on results.
Diversification efforts are underway but have not yet matured enough to fully offset reliance on a single brand.
A large part of revenue growth is tied to export channels in North America and Europe and to the popularity of online platforms such as Amazon, exposing the company to currency swings, shifts in consumption trends, and changes in online platform policy.
Increased concentration in any single country or channel would also raise sensitivity to regional demand shocks. Access to the Chinese market is handled through a local sales subsidiary, but the possibility of changes in the local regulatory environment remains.
The company must continually expand capacity to keep pace with rising orders; if expansion lags demand growth, supply constraints could result, while excessive expansion could instead depress utilization rates.
Given the difficulty of yield management and skilled-labor requirements inherent to hydrogel production, how quickly new lines stabilize is also a variable that can affect results.
Expansion into new categories such as basic skincare could likewise involve temporary cost burdens during the initial yield-stabilization process.
The Ministry of Food and Drug Safety (MFDS) is set to host a 'global cosmetics regulator meeting' expanding its Asia-focused beauty forum to the Middle East and Latin America, worth tracking for shifts in the K-beauty export regulatory environment.
When 3Q26 results are disclosed, investors can check whether new global-brand projects contributed to second-half revenue as expected and how margins trended versus 2Q26.
It will be worth confirming whether production capacity, expanded to 8.2 million sheets per month as of March 2025, has been further increased and how utilization rates have evolved.
The confirmed FY2026 annual results can be compared against the preliminary forecasts cited by Hana Securities (revenue of KRW 134.5bn, operating profit of KRW 24.2bn) to see how closely they were met.
Genic has shown a clear pattern of moving from operating losses in 2022-2023 to profitability in 2024, followed by marked expansion in both revenue and profit through 2025 and 1H26.
The core driver of this growth is expanding hydrogel mask orders centered on Beauty Selection's BIODANCE brand, supplemented by diversification into basic skincare and channel expansion such as the Kroger listing.
That said, periods of significant quarterly volatility, as seen in 4Q25, and the concentration of revenue in a particular brand are factors that warrant balanced consideration. The balance sheet has strengthened noticeably, with equity growth, a declining debt ratio, and improved operating cash flow.
On the industry side, high entry barriers in the hydrogel category are cited as favoring incumbents, though the possibility of intensified competition exists should large ODM players enter in force. This report presents no investment opinion or price target and is intended for informational purposes only.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.