PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
CTK is in a transition period, layering a US OTC manufacturing plant and biodegradable plastics business onto its North America-centric cosmetics platform, with revenue showing signs of recovery while net income attributable to owners remains in loss territory.
2025 consolidated revenue rose to KRW 89.2 billion year over year, but the company posted an operating loss of KRW 5.7 billion and a net loss attributable to owners of KRW 7.0 billion, reverting to loss after 2023's profit.
In Q2 2026, revenue reached KRW 29.0 billion with an operating profit of KRW 0.47 billion, ending three consecutive quarters of operating loss, yet net income attributable to owners stayed negative at KRW -1.98 billion.
A North American OTC drug manufacturing facility acquisition and a biodegradable plastics (PBAT/PHA) materials business are underway, targeting meaningful earnings contribution from 2026 onward.
The debt ratio jumped from 22.1% in 2024 to 75.5% in 2025, marking a significant shift in the balance sheet structure.
Despite the net loss in fiscal 2025, the company maintained a differentiated dividend of KRW 60 per share for the controlling shareholder and KRW 110 for other shareholders.
CTK is a cosmetics platform company that outsources the manufacturing of finished cosmetics for global brands, providing services across the full chain from product design and formula development to marketing, production, and logistics.
Its differentiating feature is a fab-less model that relies on external manufacturing facilities rather than owning factories, working horizontally with roughly 300 domestic and overseas manufacturing and packaging partners.
Compared with domestic ODM peers, CTK differentiates itself through its North America-centered business and strength in color cosmetics. As of the first quarter of 2025, North America accounted for 76.5% of revenue by region, followed by 10.4% domestically and 13.1% for Europe and Asia combined.
New growth drivers cited by the company include the CTK CLIP digital platform and an eco-friendly materials business. Early last year, the company acquired an OTC (over-the-counter drug) manufacturing plant in California through a subsidiary, establishing a production base to expand its North American footprint.
In eco-friendly materials, the company commercialized biodegradable plastic resins (PBAT, PHA), reported to offer environmental advantages over the widely used PLA.
In January 2026, CTK Bio announced it had developed next-generation eco-friendly super-absorbent material technology applicable to feminine hygiene products, broadening the scope of its materials business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩22.5B | ₩200M | 1.0% |
| 2025Q3 | ₩31.1B | -₩4.1B | −13.0% |
| 2025Q4 | ₩16B | -₩2.2B | −13.8% |
| 2026Q1 | ₩24.5B | -₩1.7B | −7.1% |
| 2026Q2 | ₩29B | ₩500M | 1.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩69.4B | -₩15.2B | -₩17.7B | −21.9% | −11.5% | 18.3% |
| 2023 | ₩88.9B | ₩2.7B | ₩6.9B | 3.1% | 4.4% | 19.7% |
| 2024 | ₩83.6B | ₩100M | -₩3.3B | 0.2% | −2.1% | 22.1% |
| 2025 | ₩89.2B | -₩5.7B | -₩7B | −6.4% | −4.7% | 75.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Looking at annual results, CTK posted a heavy loss in 2022 with revenue of KRW 69.4 billion, an operating loss of KRW 15.2 billion (operating margin of -21.9%), and a net loss attributable to owners of KRW 17.7 billion, before turning profitable in 2023 with revenue of KRW 88.9 billion, operating profit of KRW 2.7 billion (margin 3.1%), and net income attributable to owners of KRW 6.9 billion.
In 2024, however, revenue slipped slightly to KRW 83.6 billion and operating profit shrank to just KRW 0.13 billion (margin 0.2%), while net income attributable to owners swung back to a loss of KRW 3.3 billion.
In 2025, revenue grew again to KRW 89.2 billion, but the operating loss widened to KRW 5.7 billion (margin -6.4%) and the net loss attributable to owners expanded to KRW 7.0 billion.
The company attributed the top-line growth to newly consolidated subsidiaries and higher sales at key subsidiaries, while explaining the deteriorating bottom line as a result of one-off costs from equipment maintenance and facility relocation, rising interest expense, and fluctuations in foreign exchange and financial asset valuation.
On a quarterly basis, Q2 2025 saw revenue of KRW 22.5 billion, operating profit of KRW 0.23 billion, and net income attributable to owners of KRW 1.25 billion, but Q3 2025 revenue rose to KRW 31.1 billion while the company swung to an operating loss of KRW 4.06 billion and a net loss of KRW 4.59 billion; Q4 2025 revenue fell to KRW 16.0 billion with an operating loss of KRW 2.21 billion and a net loss of KRW 3.62 billion.
Q1 2026 posted revenue of KRW 24.5 billion with an operating loss of KRW 1.74 billion and a net loss of KRW 4.28 billion, but Q2 2026 revenue rose to KRW 29.0 billion with an operating profit of KRW 0.47 billion, ending three straight quarters of operating losses.
Even so, net income attributable to owners in Q2 2026 remained negative at KRW -1.98 billion despite the operating profit turnaround, indicating that non-operating items such as financial costs and foreign exchange effects continue to weigh on the bottom line.
On the cash flow side, operating cash flow was negative in every year except 2023 (KRW +10.6 billion), registering KRW -8.8 billion in 2022, KRW -7.2 billion in 2024, and KRW -8.2 billion in 2025, while the debt ratio also jumped sharply from 22.1% in 2024 to 75.5% in 2025, marking a notable shift in the balance sheet structure.
The K-beauty ODM/OEM industry continues to grow, led by large players such as Cosmax, Kolmar Korea, and Cosmecca Korea, and an analysis of 86 cosmetics and beauty companies for Q2 and first-half 2026 found that 68 companies, or 79.1%, achieved revenue growth.
However, revenue growth did not uniformly translate into industry-wide profitability improvement, as 26 companies still recorded operating losses, widening the performance gap between growing and struggling firms.
In the same analysis, CTK ranked among the top performers with an operating profit growth rate of 103.0% in the quarter.
Unlike large ODM firms such as Cosmax and Kolmar Korea, CTK operates a platform-based model that relies on external manufacturing facilities rather than owning its own factories, and its positioning is further differentiated by an overwhelmingly high share of North American revenue.
More recently, the company has moved beyond pure cosmetics ODM to diversify into North American OTC drug production and biodegradable plastics materials.
Government efforts to establish a deplasticization roadmap and mandate the use of recycled materials in beverage and water bottles are cited as a favorable policy backdrop for the biodegradable materials business.
That said, these new businesses are still at an early stage with limited revenue contribution so far, leaving the company at a relative disadvantage to large ODM peers in terms of economies of scale and brand portfolio diversification.
When announcing 2025 results, the company characterized the year's losses as a structural transition-period adjustment made in the process of proactively building a mid- to long-term growth foundation, and said that with infrastructure buildout and revenue portfolio diversification nearing completion, earnings recovery was expected to gain momentum from 2026.
CEO Jeong In-yong described 2025 as a period in which structural transition and infrastructure buildout proceeded in parallel, and stated the company aims to achieve genuine growth recovery in 2026 by rebuilding past core revenue around its US OTC production base and supporting domestic brands' entry into North America through a one-stop platform.
A February 2026 disclosure confirmed that capital was being injected into the US OTC plant to address aging production facilities, and the timing of stable full-scale operation still requires further confirmation.
In the eco-friendly materials business, commercialization efforts continue, including entry into the mulching film market for biodegradable plastic resin and a development agreement with Taesung Industry for biodegradable cosmetics containers, and in January 2026 CTK Bio announced development of next-generation eco-friendly super-absorbent material technology applicable to feminine hygiene products.
On the digital platform side, the company overhauled its B2B beauty development platform CTK CLIP.com in January 2026 and signed a memorandum of understanding with Cafe24 to build a smart commerce ecosystem supporting creator-tailored cosmetics brand launches.
Despite the net loss in fiscal 2025, the company decided to maintain a differentiated dividend of KRW 60 per share for the controlling shareholder and KRW 110 for other shareholders, stating this was intended to expand the return ratio for general shareholders, with final confirmation to occur at the annual general meeting.
The actual timing and scale of revenue and profit contribution from these new businesses will need to be confirmed through future quarterly results and additional disclosures.
CTK's net income attributable to owners over the trailing four quarters remains in loss territory, making it difficult to apply a conventional price-to-earnings ratio as a valuation yardstick.
The share price is set at a level below its per-share net asset value, meaning the market currently assigns a relatively conservative valuation relative to the size of shareholders' equity.
Past brokerage reports noted periods when CTK traded at a discount to the average price-to-earnings ratio of peer ODM companies, but such assessments were premised on specific-period earnings forecasts and cannot be mechanically applied to the current situation.
Maintaining a differentiated dividend even in a year of net loss is a notable point from a shareholder-return perspective, though the absolute level of dividend-related metrics is best checked through the figures displayed on screen.
Overall, the valuation sits in a range where market assessment could shift depending on when the new OTC and eco-friendly materials businesses begin contributing to results and whether operating profit stabilizes.
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 2026-08-23
A North American OTC manufacturing facility and a biodegradable plastics materials business are being layered onto the existing cosmetics ODM and platform business, diversifying the revenue and earnings structure.
Government deplasticization policy direction could provide a favorable environment for the biodegradable materials business. The company expects these new ventures to make a meaningful earnings contribution from 2026 onward.
Q2 2026 revenue reached KRW 29.0 billion with operating profit of KRW 0.47 billion, ending three consecutive quarters of operating losses. Operating profit also showed improvement compared to the same period a year earlier. However, a full recovery through to the net income line has not yet been confirmed.
Despite the net loss in fiscal 2025, the company maintained a differentiated dividend of KRW 60 per share for the controlling shareholder and KRW 110 for other shareholders. The company described this as a decision aimed at expanding returns to general shareholders. It also stated its intention to maintain shareholder return policy based on financial soundness.
While operating profit turned positive in Q2 2026, net income attributable to owners remained negative at KRW -1.98 billion. This suggests that non-operating factors such as financial costs and foreign exchange-related items continue to weigh on the bottom line. Operating performance improvement has not directly translated into net income improvement.
The US OTC plant has required capital injection to address aging production facilities. New businesses such as biodegradable plastics remain at an early stage with limited revenue contribution so far. The possibility that the planned timing of earnings contribution could be delayed cannot be ruled out.
The debt ratio jumped from 22.1% in 2024 to 75.5% in 2025, sharply increasing financial leverage. Operating cash flow was also negative in three of the last four years, excluding 2023. This indicates that financial burdens are rising in parallel with investment in new businesses.
The debt ratio surged from 22.1% to 75.5% within a year, and operating cash flow has been persistently negative except in 2023. As investment in new businesses continues, reliance on external financing could increase.
With 76.5% of revenue concentrated in North America, the company is highly exposed to single-region demand fluctuations and KRW/USD exchange rate movements. Indeed, the company cited fluctuations in foreign exchange and financial asset valuation as one of the factors behind the 2025 earnings deterioration. This risk could persist if regional diversification is delayed.
Confirmation that additional capital was needed for the US OTC plant to address aging facilities suggests the originally targeted timing for stable operation could be delayed. The biodegradable plastics business is also an early-stage venture whose performance depends on policy and demand conditions.
If monetization across the new businesses proceeds more slowly than expected, financial burdens could accumulate further.
Check the Q3 2026 quarterly report for whether revenue growth continues and whether the operating profit turnaround is sustained.
This is a point to review follow-up disclosures and IR materials on whether the US OTC plant's operations have stabilized and are contributing to revenue and margins.
Confirm the final approval of the fiscal 2025 differentiated dividend (KRW 60 for the controlling shareholder, KRW 110 for other shareholders) and the direction of future dividend policy.
Monitor additional contracts and disclosures related to the commercialization progress of the biodegradable plastics business, including mulching film and hygiene product materials.
CTK is in a transition period, diversifying its business structure by adding two new ventures—US OTC production and biodegradable plastics materials—onto its North America-centered cosmetics platform business. 2025 was a year in which revenue grew due to newly consolidated subsidiaries and infrastructure buildout costs, but operating and net losses widened, while in 2026, Q2 data confirmed a joint improvement in revenue and operating profit.
However, net income attributable to owners remained in loss territory despite the operating profit turnaround, and the sharp rise in the debt ratio along with persistently negative operating cash flow are financial points worth watching closely.
The new OTC production facility and biodegradable materials businesses are still at an early stage in terms of revenue contribution, and the pace and scale of their execution appear to be the key variable determining the future direction of earnings.
The company has shown a commitment to shareholder returns by maintaining a differentiated dividend even amid net losses, but the actual performance of the new businesses will need continued confirmation through future quarterly results and additional disclosures.
Overall, CTK is a company in transition where growing pains and opportunity coexist, with the sustainability of revenue recovery and the stabilization of its earnings structure serving as the key indicators for gauging its next phase.
Report written 2026-09-05 · Data as of 2026-09-04
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