PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩60 per share · Prices as of the 2026-10-02 close
NFC, running a two-pillar business of cosmetic base materials and ODM/OEM finished goods, swung from a loss in 2024 to a profit in 2025, and quarterly revenue and operating profit have kept rising through 2026.
2025 consolidated revenue of KRW71.6bn and operating profit of KRW12.5bn marked a swing from the prior year's loss, with growth continuing through Q1–Q2 2026
Finished-goods (balm-type cleanser) business represents the largest revenue share, while the materials segment counts LG Household & Health Care, Cosmax, Kolmar Korea and Amorepacific among its clients
As of Q1 2026, manufacturing utilization stood at 38.1% and filling/packaging utilization at 41.3%, leaving room for further capacity use
Strong K-beauty exports and expansion through global distribution channels such as Amazon are translating into sharp growth for ODM client sales
As a small-cap stock, the company carries relatively high client/channel concentration and share-price volatility
NFC was established in 2012 with cosmetic base material manufacturing and contract production of finished goods as its core business, and listed on KOSDAQ in 2020.
The business consists of two pillars — a cosmetic materials segment and an ODM/OEM finished-goods segment — with the materials segment accounting for roughly 30% and ODM/OEM for roughly 70% of annual revenue.
On a separate basis in Q1 2026, finished goods generated KRW14.947bn, or 67.3% of total revenue, the largest share, while materials contributed KRW4.328bn (19.5%) and merchandise sales added KRW2.746bn.
The company is developing differentiated materials such as high-content stabilized ceramide products based on its MLV stabilization technology, and holds 14 domestic patents covering poorly-soluble substance stabilization, nano-liposomes and fermentation technology.
In finished goods, the company's strength lies in balm-type cleansers, using a high-temperature fluidized-bed multi-filling automation technology it developed as a world first.
Key clients in the materials segment include major brands such as LG Household & Health Care, Cosmax, Kolmar Korea and Amorepacific, and the company also supplies raw materials to global brands including L'Oréal, expanding its footprint.
The finished-goods business has grown around cleansing balms sold through channels such as Sephora in the United States; only about 10% of overseas revenue is direct export, with the rest flowing indirectly through K-beauty inbound brands on Amazon, tying performance closely to that channel's sales trends.
Competitively, the company is pursuing differentiation in a niche of balm formulations and high-functionality materials distinct from large ODM peers such as Kolmar Korea, Cosmax and Cosmecca Korea.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩16.8B | ₩3.1B | 18.3% |
| 2025Q3 | ₩18.2B | ₩2.9B | 16.2% |
| 2025Q4 | ₩25.3B | ₩5.1B | 20.1% |
| 2026Q1 | ₩22.2B | ₩4B | 18.1% |
| 2026Q2 | ₩26.9B | ₩5B | 18.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩31.5B | ₩2.3B | ₩1.9B | 7.2% | 3.3% | 28.2% |
| 2023 | ₩42.9B | ₩4.1B | ₩3.7B | 9.5% | 6.0% | 32.6% |
| 2024 | ₩40.2B | -₩7.1B | -₩5.2B | −17.6% | −9.5% | 33.3% |
| 2025 | ₩71.6B | ₩12.5B | ₩10.1B | 17.5% | 15.4% | 40.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
NFC's consolidated results showed a clear trajectory between 2022 and 2025.
From revenue of KRW31.48bn and operating profit of KRW2.27bn (7.2% operating margin) in 2022, results improved to revenue of KRW42.87bn and operating profit of KRW4.07bn (9.5%) in 2023, before revenue slipped slightly to KRW40.23bn in 2024, when the company posted an operating loss of KRW7.09bn and a net loss of KRW5.24bn.
Revenue then surged to KRW71.62bn in 2025, with operating profit of KRW12.52bn (17.5% margin) and net profit of KRW10.06bn, marking a swing back to profitability.
On a quarterly basis, revenue and profit both expanded from KRW16.78bn revenue and KRW3.08bn operating profit in Q2 2025 to KRW18.20bn/KRW2.95bn in Q3, KRW25.33bn/KRW5.08bn in Q4, then KRW22.20bn/KRW4.03bn in Q1 2026 and KRW26.88bn/KRW5.00bn in Q2 2026.
Q2 2026 operating profit rose roughly 62% year-on-year from KRW3.08bn, a growth rate also reflected in Cosmorning's ranking of operating-profit growth among 86 cosmetics and beauty companies for the quarter.
Over the trailing four quarters (Q3 2025 through Q2 2026), owner-attributable net profit summed to roughly KRW13.45bn, indicating the company has moved past the 2024 annual net loss into a phase of expanding profit.
The debt ratio rose from 28.2% in 2022 to 40.8% in 2025, a pattern consistent with balance-sheet expansion accompanying revenue growth. The temporary loss in 2024 occurred during a period of stalled revenue, and margins have since clearly recovered alongside joint growth in the finished-goods and materials segments.
The global cosmetics materials market is projected to reach roughly USD30.9bn in 2026, growing at an average annual rate of 3.5% — a moderate-growth industry within which K-beauty-related materials and ODM demand is expanding relatively quickly.
Korean cosmetics exports rose 16.5% year-on-year in January–February this year, with exports to the United States and Europe up 36% and 44% respectively, keeping conditions in major export markets favorable.
Cosmorning's analysis of 86 cosmetics and beauty companies for Q2 and first-half 2026 found that 68 companies (79.1%) saw revenue growth, confirming broad-based growth spanning brands, ODM/OEM manufacturers and global distributors.
Within this landscape, NFC differs in scale from large ODM players such as Kolmar Korea, Cosmax and Cosmecca Korea, but is pursuing differentiation in the niche of balm formulations and high-functionality materials technology.
A significant portion of the company's overseas revenue flows indirectly through K-beauty inbound brands on Amazon, making performance sensitive to industry-cycle events such as Amazon Prime Day and the expansion of offline retail placement in the United States and Europe.
In materials, the client base is expanding from major domestic brands such as LG Household & Health Care, Cosmax, Kolmar Korea and Amorepacific to global brands including L'Oréal, broadening the company's position from a finished-goods niche player toward a link in the broader materials supply chain.
In its Q1 2026 disclosure, the company said it has set the North American market as a primary target and is working to expand its client base, noting that major ODM clients' revenue growth rates exceeded an average of 300%–600% year-on-year from the first quarter onward.
Media reports indicate that channel expansion — including clients moving into offline retail and additional export markets — is building expectations for further growth this year.
As of the end of Q1 2026, the book value of production facilities stood at KRW44.97bn, with manufacturing utilization at 38.1% and filling/packaging utilization at 41.3%, both short of full capacity, meaning that a future rise in utilization tied to order growth could be a variable for cost-structure improvement.
The grinding-balm container (glass bottle) supply shortage that previously constrained revenue was analyzed as gradually easing from July 2025 as the supplier doubled production, a bottleneck relief seen as a condition that could support finished-goods volume expansion.
Company IR communications have also referenced pursuing the North American market with a lactic-acid-bacteria-derived PDRN cosmetic ingredient the company says it commercialized as a world first, and the company has completed patent registration for a next-generation dual-core multi-balm stick formulation to prepare for new-formulation expansion.
That said, the timing and scale at which these new ingredients and formulations translate into actual revenue will need to be confirmed through future quarterly disclosures.
Since swinging from a loss in 2024 to a profit in 2025, NFC has been in a phase of steadily expanding profit through the first half of 2026, and this earnings-recovery trend is a key variable shaping how the market values the stock.
The share price relative to net assets appears to have moved into a segment carrying more of a premium compared with the loss-making period, which can be interpreted as partly reflecting expectations for continued earnings improvement following the return to profit.
Earnings-based valuation multiples vary considerably among cosmetics materials and ODM companies, so differences in multiples often reflect the market's assessment of each company's growth durability more than a simple comparison against an industry average.
Dividend policy has been maintained at a modest cash-dividend level, consistent with the generally low payout tendency seen among small-cap cosmetics materials and ODM companies with strong growth-stock characteristics.
Given that there have been share-count events such as a bonus share issuance, any time-series comparison of per-share metrics needs to account for the effect of such capital actions.
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
The company swung from an operating loss of KRW7.09bn in 2024 to operating profit of KRW12.52bn in 2025, and quarterly profit has continued to expand, reaching KRW4.03bn in Q1 2026 and KRW5.00bn in Q2 2026. Q2 2026 operating profit rose roughly 62% year-on-year, with operating margin improving alongside revenue growth.
Trailing four-quarter owner-attributable net profit totaled roughly KRW13.45bn, a clear contrast to the 2024 annual net loss.
Korean cosmetics exports rose 16.5% year-on-year in January–February this year, with the United States and Europe up 36% and 44% respectively, keeping conditions favorable in major export markets.
Major ODM clients' revenue growth rates have exceeded an average of 300%–600% year-on-year, driving results from the first quarter onward. A significant portion of overseas revenue flows indirectly through K-beauty inbound brands on Amazon, meaning channel expansion translates directly into revenue growth.
The materials segment counts major domestic brands such as LG Household & Health Care, Cosmax, Kolmar Korea and Amorepacific among its key clients, and is also expanding its footprint by supplying raw materials to global brands including L'Oréal.
The company holds 14 domestic patents covering MLV stabilization technology, nano-liposomes and fermentation technology, forming a technological barrier to entry. It has also completed patent registration for a next-generation dual-core multi-balm stick formulation, laying the groundwork for new product expansion.
As of the end of Q1 2026, manufacturing utilization stood at 38.1% and filling/packaging utilization at 41.3%, both below half of capacity. Book value of production facilities is a substantial KRW44.97bn, and if utilization remains low, fixed-cost burden could constrain margin improvement.
Whether future order growth translates into higher utilization is a key variable for margin trends going forward.
A significant portion of overseas revenue comes not from direct exports but indirect exports through K-beauty inbound brands on Amazon, meaning results can be sensitive to changes in that channel's policies or sales trends.
While major ODM clients' revenue growth rates of 300%–600% demonstrate growth momentum, they also suggest a substantial concentration of sales in a small number of clients. Earnings volatility could increase if order flow from a particular client slows.
As a small-cap stock, liquidity is relatively limited, and given capital events such as a bonus share issuance, care is needed when interpreting metrics affected by changes in share count.
The debt ratio rose from 28.2% in 2022 to 40.8% in 2025, warranting attention to asset and liability growth alongside revenue expansion. Supply-demand factors typical of small caps can cause the share price to move significantly independent of underlying results.
As seen in the grinding-balm container (glass bottle) supply shortage that constrained revenue from early 2025, a recurrence of supply disruption for specific materials could affect shipments in the finished-goods business.
That issue was analyzed as gradually easing from July 2025 as the supplier increased production, but the possibility of a similar bottleneck recurring remains an ongoing risk. Diversification of raw materials and inventory management systems will be factors shaping future supply stability.
As K-beauty product exports increase, the possibility cannot be ruled out that destination-country cosmetics ingredient or quality regulations could tighten, or that distribution restrictions could be imposed on individual products.
A significant share of the company's revenue is tied to overseas markets, particularly the United States and Europe, requiring monitoring of regulatory changes in those regions. That said, this is an industry-wide risk, and no company-specific regulatory issue has been confirmed.
The debt ratio rose from 28.2% in 2022 to 40.8% in 2025, a change that appears to have accompanied asset and liability growth tied to revenue expansion. Operating cash flow in 2025 was KRW1.26bn, low relative to net profit of KRW10.06bn, warranting continued observation of the gap between earnings and cash flow.
Should further investment or capacity expansion follow, changes in the financial structure will need to be tracked accordingly.
Q3 2026 results are due for disclosure around this time; it is worth checking whether the revenue and profit growth seen through Q2 continues and how growth rates at major ODM clients trend.
It is worth checking how effects from major online shopping events such as Amazon and the expansion of offline retail placement in the US and Europe are reflected in revenue.
Whether manufacturing utilization (38.1% in Q1) and filling/packaging utilization (41.3%) improve will help gauge the fixed-cost leverage effect.
It is worth confirming whether new products and materials such as the next-generation multi-balm stick formulation and the lactic-acid-bacteria-derived PDRN ingredient are actually adopted by clients and reflected in revenue.
Q4 and full-year 2026 confirmed results are expected around this time, allowing a final check on whether the annual profit level achieved after the 2025 return to profitability has been sustained.
Built on two business pillars — cosmetic materials and ODM/OEM finished goods — NFC swung from a loss in 2024 to a profit in 2025, and revenue and operating profit continued to rise together through Q1–Q2 2026.
Structural benefits from strong K-beauty exports and expansion through global distribution channels such as Amazon are evident in the sharp revenue growth at ODM clients, and the client base has broadened to include major brands such as LG Household & Health Care, Cosmax, Kolmar Korea and Amorepacific as well as global brands including L'Oréal.
However, manufacturing and filling/packaging utilization still hover around 40%, and a significant portion of overseas revenue depends on indirect exports through the Amazon channel, meaning concentration risk in specific clients and channels also exists.
A modest rise in the debt ratio and operating cash flow running below net profit are also points worth watching from a financial-structure perspective.
Going forward, Q3 results, the trend in utilization rates, and whether new formulations and materials translate into revenue will be key points to observe in assessing the durability of the earnings-recovery trend.
Overall, this report does not present an investment opinion or target price and is provided 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.