KOSDAQCosmetics251970

Pum-tech Korea

₩60,500▼ 3.97%2026-10-02 close

Market Cap

₩750.2B

Turnover

₩9.3B

Volume

150,000 shares

Shares out.

12.4M

PER

15.8×

PBR

2.2×

EPS

₩3,505

Dividend Yield

0.81%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩450 per share · Prices as of the 2026-10-02 close

Report overview

Capacity Bottleneck Eases, Q2 Earnings Recover

With the Plant 4 relocation and injection-molding bottleneck resolved, Q2 2026 revenue and operating profit rebounded sharply, and the key watch point is whether growth continues into the second half on the back of Plant 6 and 7 capacity additions.

1
Q2 2026 revenue reached KRW 116.8bn and operating profit KRW 21.7bn, up 27% and 67% quarter-on-quarter, signaling visible production normalization.
2
Indie-brand revenue in the pump division grew from KRW 122.5bn in 2023 to KRW 167.9bn in 2025, with its share of the customer base rising from 57% in Q1 2025 to 64% in Q1 2026.
3
Plant 4 was completed in November 2025, Plant 6 is set for completion in H2 2026 with partial operation from September, and the Plant 7 site purchase contract was signed in April 2026.
4
Korea's 2025 cosmetics exports rose 12% year-on-year to a record USD 11.4bn, with the number of export destinations expanding to 202 countries.
5
It is also worth noting that the average brokerage target price has trended lower over the past six months.

Business structure

Founded in 2001 and listed on KOSDAQ in 2019, Pumtech Korea is a cosmetics container specialist that internalizes the entire production process from mold design to injection molding, metallization, printing, and post-processing assembly.

Its business spans pump and container products, tubes, compacts, sticks, and droppers, with the 2026 expected revenue mix reported at roughly 74.5% for the pump division, 24.5% for tubes, and 1.0% for health-supplement containers.

Cosmetics container-related sales accounted for 99.1% of total revenue in H1 2026, meaning the vast majority of results stem from this business.

By customer channel, sales through domestic ODM/OEM companies made up 35.0% and direct transactions with domestic brands 40.5%, while export-related sales combining overseas sales partners, ODM, and direct overseas brand transactions totaled KRW 35.7bn in H1, about 17% of revenue.

The company has built pricing power and a broad customer base through a business model that proactively proposes new form factors to clients using its self-developed standard molds (Freemold), and it held 521 domestic and international patents, utility models, and design rights as of end-June.

Competitively, it is the domestic market leader in cosmetics containers, competing against Yonwoo, a subsidiary of Kolmar Korea, and Samhwa, which was acquired by TPG (Texas Pacific Group). Beyond the parent entity, it operates subsidiaries Buguk T&C in tubes and Jalone Natural in health supplements.

In Japan it transacts directly with Shiseido, and it opened a North America sales office in New York in September 2024 to expand direct sales in Western markets.

Earnings trend

Quarterly revenue · Operating profit

₩105.4B₩19.4B25Q2₩97.7B₩15.3B25Q3₩77.1B₩8.3B25Q4₩91.8B₩13B26Q1₩116.8B₩21.7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩236.6B₩26.5B2022₩284.5B₩35.3B2023₩337.5B₩48.4B2024₩372B₩56.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩105.4B	₩19.4B	18.4%
2025Q3	₩97.7B	₩15.3B	15.7%
2025Q4	₩77.1B	₩8.3B	10.8%
2026Q1	₩91.8B	₩13B	14.1%
2026Q2	₩116.8B	₩21.7B	18.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩236.6B	₩26.5B	₩20B	11.2%	9.5%	23.5%
2023	₩284.5B	₩35.3B	₩29.1B	12.4%	12.2%	23.8%
2024	₩337.5B	₩48.4B	₩38.3B	14.3%	14.4%	27.1%
2025	₩372B	₩56.5B	₩34.4B	15.2%	11.7%	28.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Consolidated revenue in 2025 came to KRW 371.96bn, up 10.2% from KRW 337.48bn in 2024, while operating profit rose 16.8% to KRW 56.51bn from KRW 48.40bn, lifting the operating margin from 14.3% to 15.2%.

However, net income attributable to owners fell to KRW 34.44bn from KRW 38.33bn a year earlier, diverging from the operating profit growth.

On a quarterly basis, after posting KRW 105.4bn in revenue and KRW 19.4bn in operating profit in Q2 2025, the company remained solid in Q3 with KRW 97.7bn in revenue and KRW 15.3bn in operating profit, but Q4 saw a sharp drop to KRW 77.1bn in revenue and KRW 8.3bn in operating profit.

This was attributed to disruption from delayed Plant 4 completion and equipment relocation compounded by fewer working days around the Chuseok holiday.

The bottleneck lingered into Q1 2026, with revenue of KRW 91.8bn and operating profit of KRW 13.0bn, before a marked rebound in Q2 2026 to revenue of KRW 116.8bn (+27.4% quarter-on-quarter), operating profit of KRW 21.7bn (+67.0% quarter-on-quarter), and owners' net income of KRW 18.2bn.

This recovery reflects the completion of equipment redeployment across Plants 1 through 3 and the resolution of the Plant 4 injection-molding bottleneck, converting backed-up orders into revenue.

The trailing four-quarter sum of owners' net income (Q3 2025 through Q2 2026) reached roughly KRW 40.7bn, already exceeding the full-year 2025 figure of KRW 34.4bn.

On the balance sheet, the debt ratio edged up from 23.5% in 2022 to 28.1% in 2025 but remains at a low level, while operating cash flow rose steadily from KRW 29.4bn in 2022 to KRW 61.2bn in 2025, indicating that profit growth has been accompanied by improving cash generation.

Industry analysis

The global cosmetics packaging market is projected to grow from USD 43bn in 2022 to USD 59bn by 2027, with Korean-made containers viewed as holding an edge over Chinese products in both quality and price competitiveness.

The upstream K-beauty market continues its expansion phase, with Korea's 2025 cosmetics exports hitting a record USD 11.4bn, up 12% year-on-year, and the number of export destinations widening from 172 countries in 2024 to 202.

In particular, the growing influence of social media and video platforms has spawned a wave of indie brands that rely on outsourced production and distribution, directly benefiting Pumtech Korea as the domestic market leader in containers.

On the competitive front, large rivals include Yonwoo, acquired by Kolmar Korea, and Samhwa, acquired by TPG, but Pumtech posted a 14.3% operating margin in 2024, ahead of Yonwoo, which recorded revenue of KRW 274.8bn but only KRW 0.9bn in operating profit, a 0.3% margin, in both scale and profitability.

Some in the industry have suggested that the indie brand market's high growth, Pumtech's dominant market share, and high technical barriers to entry could justify a valuation premium relative to sector averages.

At the same time, concerns persist over rising raw material costs (naphtha, PE/PP) linked to Middle East geopolitical instability, though the industry view is that the impact should be limited given supplier diversification and price pass-through to clients, alongside signs that naphtha supply conditions are stabilizing.

Outlook

The company continues to expand production capacity to keep pace with rising orders. Plant 4 was completed in November 2025 (with KRW 25.4bn spent on land and KRW 19.7bn on the building), redeploying previously dispersed injection-molding equipment and aiming to lift overall capacity by more than 30%.

Plant 6, budgeted at KRW 14.6bn for land and KRW 9.4bn for the building, is scheduled for completion in H2 2026 with partial operation starting in September, with part of the facility designed as a clean room for pharmaceutical and health-supplement containers to lay the groundwork for new businesses.

In April 2026 the company signed a contract to purchase the Plant 7 site (KRW 19.6bn in land cost), continuing its medium- to long-term capacity roadmap.

The cosmetics container utilization rate in H1 2026 stood at 83.5%, slightly above 81.6% in 2025 and 81.4% in 2024, suggesting the company is proactively securing production headroom through new plants as existing lines already run at high utilization.

Yuanta Securities, in a July 6 report, estimated 2026 consolidated revenue at KRW 438.8bn, up 18% year-on-year, and operating profit at KRW 70.0bn, up 24%, projecting revenue would trend upward through the second half.

DB Financial Investment, in a July 13 report, maintained a target price of KRW 70,000 with a Buy rating, stating that with Plant 6 expansion completed by Q3 2026, backlogged orders would be absorbed, supporting continued quarterly revenue growth.

Hanwha Investment & Securities, in a July 24 report, maintained a target price of KRW 67,000 with a Buy rating, projecting the product mix would improve further into the second half.

However, it should also be noted that the average brokerage target price over the past six months has trended lower than the average of the preceding six months, indicating the broader consensus has turned somewhat more conservative.

Valuation

PER

15.8×

PBR

2.2×

ROE

13.6%

EPS

₩3,505

BPS

₩25,704

Dividend per share

₩450

Pumtech Korea is in a phase where earnings recovery has become visible from Q2 2026 onward, following weak results in Q4 2025 and Q1 2026.

Several brokerage reports in recent months have cited a price-to-earnings ratio of around 11 to 12 times based on expected results over the next year, which can be interpreted as close to the lower end of the trading range the company has established during past earnings-improvement periods.

The share price relative to net assets has formed against a backdrop of steadily growing shareholders' equity each year, making it worth watching how the pace of earnings recovery compares with the pace of capital accumulation.

Dividends have been paid annually, though the level is not notably high relative to the sector.

When assessing valuation, it seems reasonable to weigh both the speed at which the normalization of Plant 4 and Plant 6 operations translates into earnings recovery and the background behind the recent, more conservative adjustment in brokerage consensus.

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 2026-09-04

Bull factors

Structural Growth in Indie Brands and Exports

Indie-brand revenue in the pump division grew from KRW 122.5bn in 2023 to KRW 167.9bn in 2025, with its share within the customer base expanding from 57% in Q1 2025 to 64% in Q1 2026.

Korea's cosmetics exports hit a record USD 11.4bn in 2025 with destinations expanding to 202 countries, another favorable factor in the upstream environment. Because indie brands mostly outsource production and distribution, their growth translates directly into higher order volumes for the company.

Production Normalization and Expansion Roadmap

Following the completion of Plant 4, Plant 6 is scheduled for completion in H2 2026 with partial operation from September, and the Plant 7 site purchase has also been finalized.

The 27% and 67% quarter-on-quarter increases in Q2 2026 revenue and operating profit, respectively, are seen as a direct result of the resolved equipment bottleneck. As capacity expands in stages, the current situation in which order volumes exceed production capacity is expected to gradually ease.

High Profitability and New Business Diversification

The 2024 operating margin of 14.3% far exceeds the 0.3% margin of key competitor Yonwoo, underscoring the profitability of the company's proprietary standard-mold (Freemold) business model. The operating margin improved further to 15.2% in 2025.

Part of Plant 6 is being built as a clean room for pharmaceutical and health-supplement containers, preparing an expansion into new business areas.

Bear factors

Consensus Turning More Conservative

The average brokerage target price over the past six months has been assessed as lower than the average of the preceding six months. This appears to reflect a moderation in market expectations following the cumulative effect of the Plant 4 relocation delay and weak Q4 2025 results. While Q2 recovery has been confirmed, market conviction about its durability still appears to be forming.

Execution Risk in Capacity Investment

The weak results in Q4 2025 and Q1 2026 stemmed from delayed completion of Plant 4 and equipment relocation disruptions. Similar scheduling delays or initial ramp-up cost burdens cannot be ruled out for subsequent expansions such as Plant 6 and Plant 7. If new plants fail to come online as planned, the gap between orders and production capacity could widen again.

Raw Material Costs and Intensifying Competition

Concerns persist over rising costs for raw materials such as naphtha, PE, and PP amid Middle East geopolitical instability.

Major competitors including Yonwoo, a Kolmar Korea subsidiary, and Samhwa, owned by TPG, continue to undergo business restructuring and M&A, warranting monitoring of medium-term shifts in the competitive landscape.

On the net income side, the fact that owners' net income declined year-on-year in 2025 despite higher operating profit is also a point that warrants continued observation.

Risk factors

Raw Materials and Supply Chain

Prices of naphtha, PE, and PP, the raw materials for plastic containers, can become volatile depending on Middle East geopolitical conditions.

The company has stated it limits the impact through supplier diversification and price pass-through to clients, but cost-ratio fluctuations remain a factor that can directly affect margins.

Customer and Competitive Structure

A significant portion of revenue depends on indie brands and domestic ODM/OEM channels, making the company sensitive to demand shifts in specific brands or channels. Market-share competition with large rivals such as Yonwoo under Kolmar Korea and Samhwa under TPG also continues.

Capital Investment and Utilization

As seen with the Plant 4 completion delay, temporary production disruptions during large-scale plant completions and equipment relocations could recur. Whether subsequent investments such as Plant 6 and Plant 7 proceed within planned schedules and cost ranges could affect medium-term earnings stability.

What to watch next

September 2026
This is the point to check whether Plant 6 begins partial operation as planned and how quickly initial production stabilizes. A key point to watch is how much the resolved injection-molding bottleneck feeds through to Q3 revenue and profit.
Around November 2026
The Q3 earnings release will be the point to check whether the recovery seen in Q2 continues, and whether revenue and operating margin keep trending upward quarter-on-quarter.
H2 2026
It is worth confirming the timing and finalized investment scale for the Plant 7 groundbreaking, as well as concrete utilization plans for the pharmaceutical and health-supplement clean room within Plant 6.
Early 2027
This is when full-year 2026 results will be finalized and 2027 guidance likely presented, allowing a comprehensive assessment of how much the capacity expansion contributed to annual results.

Overall view

Pumtech Korea has entered a phase of clear revenue and operating profit recovery from Q2 2026, following the equipment bottleneck and weak results that persisted from Q4 2025 through Q1 2026.

A favorable upstream environment driven by indie-brand-led K-beauty export growth, along with a phased capacity expansion roadmap spanning Plants 4, 6, and 7, underpins the company's medium- to long-term growth narrative.

However, 2025 saw a divergence where operating profit rose while owners' net income declined, and the average brokerage target price has undergone a conservative downward adjustment over the past six months.

Raw material price volatility, execution risk in subsequent capital investments, and market-share competition with larger rivals are variables that also warrant attention.

Going forward, the pace of Plant 6 operational normalization and Q3 results are likely to serve as key indicators of whether the recovery trend continues.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.