PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩275 per share · Prices as of the 2026-10-02 close
Its Hanbul has posted four consecutive years of revenue and operating profit improvement since its 2022 trough, with owner net income also trending higher over the most recent four quarters.
Annual revenue rose every year from KRW 130.7 billion in 2022 to KRW 153.4 billion in 2025.
Operating margin improved markedly from 3.7% in 2022 to around 12% in 2024-2025.
Owner net income reached KRW 9.41 billion and KRW 9.63 billion in 2026 Q1 and Q2, respectively, sharply up from KRW 0.21 billion in 2025 Q2.
Because subsidiaries such as Neopharm carry large non-controlling interests, owner-attributable net income represents a relatively small share of total consolidated net income.
The debt ratio has stayed in the mid-single digits, indicating a relatively stable balance sheet.
Its Hanbul is an integrated cosmetics company covering R&D, manufacturing, marketing, and distribution, a structure built through its merger with parent Hanbul Cosmetics. Its core brands include 'It's Skin', 'Prestige', 'Power10', and 'Chasing Rabbit', spanning both skincare and color cosmetics.
Sales channels are split into domestic, global/overseas subsidiaries, and new channels (H&B stores, home shopping, online malls), with new channels representing the largest share of revenue, followed by domestic and global/overseas operations.
Among consolidated subsidiaries, derma-cosmetics brand operator Neopharm has consistently been the group's largest revenue contributor. The company also operates overseas units including It's Skin China, a China-based manufacturing entity, and It's Skin Japan LLC for local production and sales.
Merchandise sales (distribution of third-party brands) make up a portion of revenue but remain a relatively small share.
Competitively, the company operates alongside large brand houses such as Amorepacific and LG Household & Health Care, emerging indie brands like APR and d'Alba Global, and ODM manufacturers such as Cosmax and Kolmar Korea.
The cosmetics industry's structural characteristics, including seasonality (stronger in winter, weaker in summer) and sensitivity to trends, continue to influence the company's results.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩37.3B | ₩3.9B | 10.6% |
| 2025Q3 | ₩37.8B | ₩4.8B | 12.8% |
| 2025Q4 | ₩42B | ₩4.9B | 11.6% |
| 2026Q1 | ₩42.7B | ₩6.8B | 16.0% |
| 2026Q2 | ₩49.7B | ₩7.3B | 14.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩130.7B | ₩4.8B | ₩3.3B | 3.7% | 0.9% | 6.6% |
| 2023 | ₩139.2B | ₩8.1B | ₩3.4B | 5.8% | 0.9% | 6.8% |
| 2024 | ₩142.4B | ₩17.9B | ₩16.5B | 12.6% | 4.4% | 5.9% |
| 2025 | ₩153.4B | ₩19.2B | ₩16.7B | 12.5% | 4.3% | 5.8% |
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
Consolidated revenue rose for four consecutive years, from KRW 130.7 billion in 2022 to KRW 139.2 billion in 2023, KRW 142.4 billion in 2024, and KRW 153.4 billion in 2025.
Operating profit grew from KRW 4.8 billion to KRW 8.1 billion, KRW 17.9 billion, and KRW 19.2 billion over the same period, with operating margin improving from 3.7% to 5.8%, 12.6%, and 12.5%, settling into double-digit territory from 2024 onward.
Owner net income edged up from KRW 3.3 billion in 2022 to KRW 3.4 billion in 2023, then jumped to KRW 16.5 billion in 2024 and held around KRW 16.7 billion in 2025.
Notably, owner-attributable income represents a relatively small share of total consolidated net income, reflecting large non-controlling interests in subsidiaries, particularly top-revenue unit Neopharm.
On a quarterly basis, revenue of KRW 37.25 billion, operating profit of KRW 3.94 billion, and owner net income of just KRW 0.21 billion in 2025 Q2 gave way to a sharp jump in owner net income to KRW 7.68 billion in 2025 Q3 (on revenue of KRW 37.78 billion and operating profit of KRW 4.82 billion), followed by continued expansion in revenue and operating profit through 2025 Q4 (revenue KRW 42.03 billion, operating profit KRW 4.87 billion, owner net income KRW 6.60 billion), 2026 Q1 (revenue KRW 42.68 billion, operating profit KRW 6.83 billion, owner net income KRW 9.41 billion), and 2026 Q2 (revenue KRW 49.66 billion, operating profit KRW 7.33 billion, owner net income KRW 9.63 billion).
Summed over the most recent four quarters (2025 Q3 through 2026 Q2), owner net income totaled roughly KRW 33.3 billion, underscoring a clear recovery trend despite quarter-to-quarter volatility.
Operating cash flow also strengthened steadily, rising from KRW 7.1 billion in 2022 to KRW 28.1 billion in 2025, pointing to an improvement in earnings quality as well.
South Korea's cosmetics exports reached a provisional USD 7.0 billion in the first half of 2026, up 27.3% year-on-year and marking the highest first-half total on record.
By country, the United States accounted for USD 1.45 billion, or 20.7% of total exports, remaining the top destination for a second consecutive year with exports up 41.5% year-on-year, while exports to China fell 6.6% over the same period, continuing a diversification trend away from a once China-centric export structure toward the U.S. and Europe.
By product category, basic skincare led exports at USD 5.48 billion, while color cosmetics and body-cleansing products were comparatively weaker. Across the industry, earnings growth is increasingly concentrated among large brand houses, even as indie brands scale up and ODM manufacturers see rising order volumes.
Its Hanbul, while not matching the overseas revenue share of the largest brand houses, is connected to these industry trends through its new-channel and global-channel sales, which make up a meaningful portion of total revenue.
However, subsidiaries with exposure to the Chinese market could be affected by China's slowdown, meaning the impact of these regional shifts may vary across the group's different units.
The company appears to be continuing new product launches under the It's Skin brand alongside mass-market-oriented marketing for the Chasing Rabbit brand, while sharpening channel-specific strategies.
It is also developing digital-enabled skincare services, including an AI-based cosmetics recommendation tool and virtual makeup simulation.
In response to growing consumer interest in derma, vegan, and clean-beauty products, the company continues to tailor product development and marketing to newer distribution channels, a factor cited in connection with recent quarterly earnings improvement.
Industry-wide, the continued expansion of cosmetics exports centered on the U.S. and Europe is creating a broadly favorable external environment for Its Hanbul, given its subsidiaries' exposure to global and overseas-subsidiary sales channels.
That said, no specific quantitative revenue or profit guidance from the company has been confirmed, and upcoming quarterly disclosures will need to be checked to see whether the recent earnings improvement trend continues.
Given the large earnings contribution from subsidiary Neopharm, its domestic and overseas sales trends also warrant continued monitoring.
The current share price trades closer to the lower end than the upper end of the valuation range formed during the company's earnings recovery phase. The stock also trades at a discount relative to book value per share, placing it in a discount range rather than a premium range versus net assets.
Given that earnings have moved from a loss position into a sustained recovery, the earnings multiple the market assigns appears relatively low compared with larger brand houses in the sector.
Cash dividends have been paid annually, though the level of shareholder return through dividends is not markedly above the sector average. Where this valuation sits going forward will depend on the persistence of quarterly earnings trends and how the market's assessment evolves, a judgment left to individual investors.
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
Annual revenue increased for four consecutive years from 2022 to 2025, with operating margin improving from 3.7% to around 12%. Owner net income in 2026 Q1 and Q2 reached KRW 9.4 billion and KRW 9.6 billion, respectively, sharply higher than in 2025 Q2. Both quarterly revenue and operating profit have expanded over the most recent five quarters.
The debt ratio has remained stable in the 5.8-6.8% range from 2022 to 2025. Operating cash flow also grew steadily from KRW 7.1 billion in 2022 to KRW 28.1 billion in 2025, supporting the cash-generating quality of reported earnings.
South Korea's cosmetics exports hit a record USD 7.0 billion in the first half of 2026, up 27.3% year-on-year, with the U.S. now the top export destination. Its Hanbul's revenue structure, with a meaningful share coming from new channels and global/overseas subsidiaries, is connected to this broader industry tailwind.
Because subsidiaries such as Neopharm carry large non-controlling interests, owner-attributable net income represents a relatively small and volatile share of total consolidated net income.
Owner net income was just KRW 0.21 billion in 2025 Q2 before jumping to KRW 7.68 billion in Q3, illustrating this quarter-to-quarter swing.
South Korea's cosmetics exports to China fell 6.6% year-on-year in the first half of 2026. For the Its Hanbul group, which operates China-based subsidiaries, a slowing Chinese market could weigh on those units' results.
Competition is intensifying as both large brand houses and emerging indie brands expand overseas channels simultaneously.
A significant portion of Its Hanbul's revenue depends on new channels such as H&B stores, home shopping, and online malls, so competitive dynamics or terms within those channels could affect results.
While a weaker won can support export profitability, changes in trade policy—such as the reported roughly 15% U.S. tariff on cosmetics imports—could pressure margins on overseas sales. Wider currency volatility could also affect the won-translated results of overseas subsidiaries.
Buoyed by K-beauty's popularity, numerous indie brands and large companies alike are simultaneously stepping up efforts to penetrate the U.S. and European markets, meaning heavy reliance on any single brand or product could weigh on growth and valuation if momentum slows.
Subsidiaries such as Neopharm make a large contribution to group results, and those units carry substantial non-controlling interests. A slowdown in subsidiary performance or governance-related issues could simultaneously affect both consolidated results and owner-attributable earnings.
Check whether the Ministry of Food and Drug Safety's September 2026 cosmetics export data shows continued growth to the U.S. and Europe alongside a persistent decline in exports to China.
The Q3 2026 (July-September) quarterly report should be checked to see whether the quarterly improvement in revenue and operating margin continues, and whether volatility in owner net income moderates.
With U.S. tariffs on cosmetics imports still in place, the ongoing impact of tariff costs on overseas subsidiary and new-channel export margins should continue to be monitored.
At the time of the annual business report filing, it will be worth reconfirming the full-year 2026 shift in overseas and new-channel revenue mix, along with the annual earnings contribution from subsidiaries such as Neopharm.
Its Hanbul has shown steady improvement in revenue and operating profit since its 2022 trough, with owner net income also expanding notably in recent quarters.
That said, the large non-controlling interests in its subsidiaries drive significant quarter-to-quarter volatility in owner-attributable earnings, and external variables such as a slowing China market and shifting trade policy warrant continued attention.
On the industry side, K-beauty exports hit a record high in the first half of 2026, with growth centered on the U.S. and Europe, a trend that aligns with the company's revenue structure weighted toward new and global channels.
Financial health appears relatively stable, supported by a low debt ratio and steadily improving cash flow.
Key items to watch going forward include the persistence of quarterly earnings improvement, changes in subsidiaries' earnings contribution, and the pace at which overseas channel expansion feeds through into results. Investment decisions should be made only after individually verifying how these factors develop over time.
Report written 2026-09-05 · Data as of 2026-09-04
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