PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
While its core cosmetics business continues to grow in the European market, Sehwa P&C posted consolidated operating losses in both the first and second quarters of 2026 due to initial investment costs from newly consolidated PlayX Studio.
2025 consolidated revenue fell 14.2% year-over-year to KRW 37.6 billion from KRW 43.9 billion, while operating margin narrowed from 6.2% to 1.7%.
Following the January 2026 consolidation of PlayX Studio, the company posted consolidated operating losses in both Q1 2026 (KRW 906 million) and Q2 2026 (KRW 1.23 billion).
Moremo's European sales grew 5.7 times year-over-year, and the brand also launched at Rossmann, Poland's largest drugstore chain.
The largest shareholder and related parties increased their combined stake to 32.15% through open-market purchases in July 2026.
A total of KRW 7 billion was invested in PlayX Studio, a newly established entity with just KRW 1 million in capital, though full store operations have been delayed relative to plan.
Sehwa P&C is a hair dye and hair care specialist with over 40 years of history, having been founded in July 1976 and listed on KOSDAQ in September 2017.
The company operates multiple brands including Moremo and Ricena, built on research, manufacturing, and distribution expertise in hair, body care, and hair dye products.
It conducts business through channels such as Olive Young, online platforms, overseas markets, and home shopping, and has reorganized its business from a hair-dye-centered structure into hair cosmetics, further expanding into hair and body cosmetics from 2023.
More recently, the company has pursued category and distribution diversification through a Moremo brand renewal and the launch of a new body-care brand, seeking opportunities in growth segments.
In January 2026, the company acquired a 65% controlling stake in PlayX Studio, which operates a roughly 500-pyeong complex lifestyle space in Seongsu-dong, Seoul, expanding beyond cosmetics manufacturing and distribution into offline retail platform business.
The industry is characterized by active market entry from new companies and brands, with lowered entry barriers due to improved OEM accessibility increasing the importance of marketing and investment.
Against this backdrop, the company is pursuing a strategy of diversifying revenue sources by reducing reliance on domestic H&B channels and expanding into overseas channels and new businesses.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩10.5B | ₩300M | 2.5% |
| 2025Q3 | ₩11.8B | ₩400M | 3.7% |
| 2025Q4 | ₩6.6B | ₩300M | 4.2% |
| 2026Q1 | ₩8.8B | -₩900M | −10.3% |
| 2026Q2 | ₩10.4B | -₩1.2B | −11.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩37.9B | ₩800M | ₩1.3B | 2.2% | 3.6% | 9.6% |
| 2023 | ₩41.2B | ₩2B | ₩2.8B | 4.7% | 7.1% | 10.2% |
| 2024 | ₩43.9B | ₩2.7B | ₩3.3B | 6.2% | 8.0% | 10.2% |
| 2025 | ₩37.6B | ₩600M | ₩1.2B | 1.7% | 2.9% | 10.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Annual revenue rose from KRW 37.9 billion in 2022 to KRW 43.9 billion in 2024, then declined 14.2% to KRW 37.6 billion in 2025. Operating profit improved to KRW 2.74 billion (6.2% margin) in 2024 before falling sharply to KRW 0.63 billion (1.7% margin) in 2025, reversing the earlier profit recovery.
Net profit also shrank from KRW 3.31 billion in 2024 to KRW 1.17 billion in 2025.
On a quarterly basis, Q2 2025 revenue was KRW 10.5 billion with operating profit of KRW 0.27 billion, while Q3 2025 revenue reached KRW 11.8 billion with operating profit of KRW 0.44 billion but net profit of KRW 0.78 billion—net profit notably exceeding operating profit, suggesting non-operating factors—before Q4 revenue fell to KRW 6.6 billion with operating profit of KRW 0.28 billion and net profit of KRW 0.31 billion.
The trend shifted in 2026: Q1 revenue rose to KRW 8.8 billion but produced an operating loss of KRW 0.91 billion and net loss of KRW 0.70 billion, and Q2 revenue expanded further to KRW 10.4 billion yet the operating loss widened to KRW 1.23 billion with net loss of KRW 0.91 billion.
The company explained that because PlayX Studio's full-scale operations only began in April, initial investment and preparation costs were reflected first in Q1, with revenue contribution expected to become more substantial from Q2 and profitability improvements expected from Q3 onward, though the Q2 result actually deteriorated further, indicating that effect has not yet materialized in the reported figures.
As a result, cumulative net profit attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) came to roughly a KRW 0.51 billion loss, contrasting with the full-year 2025 net profit of KRW 1.17 billion.
Sehwa P&C is classified under the personal care products category within KOSDAQ manufacturing under the FICS classification, operating in a domestic hair care and hair dye market where large brands and small-to-mid-sized manufacturers coexist competitively.
New companies and brands continue to enter the market, and improved access to OEM manufacturing has lowered entry barriers, increasing the importance of marketing strategy and investment.
This environment tends to squeeze margins more for smaller brands with lower recognition, which relates to why operating margin fell sharply from 6.2% to 1.7% in 2025.
Overseas, continued interest in K-beauty has opened expansion opportunities through international health-and-beauty retail channels, as seen in Moremo's growing European sales and its launch at Rossmann in Poland.
On the offline retail side, districts such as Seongsu-dong have evolved beyond simple pop-up store clusters into battlegrounds for complex lifestyle spaces, making the complex-space business that PlayX Studio operates an emerging area with intensifying brand-and-content competition.
Overall, the company sits at the intersection of intensifying domestic competition in hair cosmetics and expanding overseas channel opportunities.
The company has stated that revenue contribution from PlayX Studio is expected to become substantial from the second quarter, with profitability improvements expected to become more pronounced from the third quarter onward, though the actual Q2 result showed a widening loss, meaning whether this outlook materializes will need to be confirmed in coming quarterly results.
PlayX Studio has said it opened an additional second-floor space in early May to expand its operating scale and plans to roll out pop-up and collaboration projects with domestic and international brands in stages, making the actual revenue contribution of these collaborations a key point to watch.
In its overseas business, the company appears set to continue pursuing European health-and-beauty channels following Moremo's expanding European sales and its Rossmann Poland launch, and media reports have also referenced a gradual recovery in Japan export revenue expected in the third quarter, warranting confirmation of the pace of recovery by region.
On the domestic core business, category diversification through a Moremo renewal and a new body-care brand launch is planned, making any renewed expansion of the domestic revenue base worth monitoring.
Given that management signaled its commitment to responsible management through a stake increase in July 2026, future IR activity and the pace at which the new business stabilizes remain variables that could influence how the market evaluates the company.
The stock currently trades at a price-to-book ratio below 1x relative to consolidated net asset value, meaning market capitalization sits below the company's accounting net asset value.
However, because net profit attributable to owners has turned negative over the most recent four quarters, price-to-earnings comparisons carry limited meaning at present.
On an annual basis, profits showed a recovery trend from 2022 through 2024 before reversing into a contraction from 2025 onward, a directional shift that should be weighed alongside any valuation assessment.
Regarding dividends, the company has a history of paying cash dividends in past fiscal years, though the sustainability of that policy going forward may be linked to the pace of earnings recovery.
With the book-value-relative price level and the recent swing into losses pointing in different directions, this is a case that resists simplification into a single valuation conclusion.
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 2026-09-05
Moremo's European sales grew 5.7 times year-over-year, and the brand also expanded its European health-and-beauty channel presence with a launch at Rossmann, Poland's largest drugstore chain.
Media reports have also referenced a gradual recovery in Japan export revenue, pointing to potential revenue-base expansion through regional diversification. Amid intensifying domestic competition, overseas channels have room to serve as an alternative axis of revenue growth.
PlayX Studio, acquired in January 2026, has contributed to expanding consolidated revenue scale, and the company has said it expects revenue contribution to become substantial from Q2 and profitability to improve from Q3.
The Seongsu-dong complex space is preparing a second-floor expansion and sequential brand collaboration projects, and if these content collaborations take hold, they could offer revenue diversification beyond a single cosmetics-focused business structure.
Largest shareholder and CEO Lee Hoon-gu and related parties increased their combined stake to 32.15% through open-market purchases in July 2026.
Executives including Vice President Lee Jae-bok and directors Cho Jun-han and Shin Jae-hoon voluntarily purchased a combined 272,264 shares as part of this ownership commitment.
The company cited the market capitalization level relative to net asset value as a background factor for the stake increase, expressing intent to enhance shareholder value.
The company posted consecutive consolidated operating and net losses in both Q1 and Q2 2026, with the Q2 loss larger than Q1's. As a result, cumulative net profit attributable to owners over the trailing four quarters turned negative, contrasting with the full-year 2025 profit of KRW 1.17 billion. When profitability improvement will actually show up in the reported figures remains unconfirmed.
Media reports have questioned the appropriateness of investing a total of KRW 7 billion in a newly established entity with just KRW 1 million in capital, given the company's own annual operating profit was only in the hundreds of millions of won range.
Actual store operations were also delayed relative to plan, with part of the second floor reportedly unoperated as of May and a low proportion of the company's core beauty products on display. If the new venture fails to monetize on the expected timeline, concerns remain over delayed recovery of the invested capital.
Competition is intensifying as new companies and brands actively enter the market and lowered entry barriers from improved OEM access. Against this backdrop, operating margin fell sharply from 6.2% in 2024 to 1.7% in 2025.
If margin recovery in the domestic cosmetics segment is delayed, this could compound with new venture investment burdens to narrow financial flexibility.
Initial investment costs from consolidating PlayX Studio have already worsened consolidated earnings for two consecutive quarters. If full store operation and monetization of brand collaboration content are delayed, the timing of profitability improvement could be pushed back further.
Funding needs from expanding into a non-core business could affect investment capacity for the core cosmetics business.
Competition from new brands is expected to continue in the hair cosmetics market, where entry barriers have been lowered by improved OEM access. This could lead to increased marketing cost burdens and margin pressure, a pattern already reflected in the sharp decline in the 2025 operating margin.
Given the company's structural reliance on domestic distribution channels, shifts in channel bargaining power also remain a variable.
Some media outlets have reported that rumors of a management stake sale have surfaced, a matter that requires confirmation through official disclosures.
While the stake increase by the largest shareholder and related parties can be read as a signal of ownership commitment, the possibility of future changes in ownership structure or management control cannot be ruled out.
Transparency around related-party transactions and funding structures tied to the new business also warrants ongoing verification.
Check the Q3 2026 quarterly report filing to confirm whether the profitability improvement the company guided for Q3 onward actually shows up in the reported figures.
Monitor whether PlayX Studio's Seongsu-dong store reaches full operation and how much its brand collaboration projects actually contribute to revenue.
Continue to check for any official disclosure related to reported management stake sale rumors or ownership structure changes.
Assess whether Moremo's European and Japanese export recovery continues, and gauge the revenue contribution from new channels such as Rossmann in Poland.
Sehwa P&C is simultaneously pursuing two tracks: expanding overseas channels for its core cosmetics business and diversifying its business scope through the new PlayX Studio venture.
Annual results showed a profit recovery trend from 2022 to 2024 before both revenue and operating margin declined simultaneously in 2025, and in 2026 the company has posted consolidated operating losses in both Q1 and Q2 due to new venture consolidation costs, turning the trailing four-quarter net profit negative.
The company has stated it expects profitability to improve from Q3 onward, but the Q2 result showed an even larger loss, leaving that outlook unconfirmed.
On the other hand, facts such as Moremo's growing European sales, its Rossmann Poland launch, and the stake increase by the largest shareholder and management can be read positively in terms of business expansion and ownership commitment.
At the same time, unresolved uncertainties remain, including questions over the scale of the PlayX Studio investment, delays in store operations, and reported rumors of a management stake sale.
On balance, this appears to be a period where bearish factors—domestic margin pressure from intensifying competition and delayed monetization of the new business—are closely matched against bullish factors such as overseas channel expansion and strengthened ownership commitment.
Report written 2026-09-05 · Data as of 2026-09-04
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