Korea Stock Market Insights

Tag: Collagen

  • Nutry’s Q2 2025 Earnings Surprise: A Turnaround in Sight?

    1. Nutry’s Q2 2025 Earnings Analysis

    On August 14, 2025, Nutry announced preliminary Q2 earnings of ₩25.5 billion in revenue, ₩200 million in operating profit, and ₩100 million in net profit. These figures significantly surpassed market expectations, showing improved profitability despite a slight decrease in revenue compared to Q1.

    2. Behind the Surprise: What Changed?

    The main drivers behind this surprising performance are the potential slowdown in the decline of collagen sales and the progress of new business ventures. Since 2024, Nutry has been diversifying its portfolio into animal feed, medical devices, and pharmaceuticals.

    3. Turnaround Potential: Opportunities and Risks

    • Opportunities:
      • Positive earnings could improve investor sentiment and boost stock prices.
      • Growth in the global collagen market and the domestic inner beauty market.
      • Potential for new businesses to drive future growth.
    • Risks:
      • Continued decline in revenue and high sales and administrative expenses.
      • Intensifying competition in the inner beauty market.
      • Potential for exchange rate fluctuations to negatively impact profitability.

    4. Action Plan for Investors

    While the Q2 earnings are positive, investors should closely monitor the following factors for a sustained turnaround:

    • Confirm the turnaround trend by analyzing future quarterly earnings.
    • Monitor cost efficiency and the performance of new businesses.
    • Assess the recovery of collagen sales and strategies to enhance market competitiveness.

    Frequently Asked Questions

    What is Nutry’s main business?

    Nutry develops and distributes inner beauty health functional foods based on nature-oriented biotechnology. Key products include Pandora (finger root extract powder) and EverCollagen (low-molecular collagen peptide).

    Why are these Q2 earnings considered positive?

    The earnings exceeded market expectations. While revenue continues to decline, operating and net profits have improved, suggesting a potential turnaround.

    What should investors consider when investing in Nutry?

    Investors should monitor the recovery of collagen sales, reduction of sales and administrative expenses, and the performance of new businesses. They should also be mindful of external factors such as intensifying competition and exchange rate fluctuations.

  • Seoheung (008490) Q2 Earnings Surprise: 113% Operating Profit Surge, Investment Strategy Analysis

    1. Seoheung Q2 Earnings: A Surprising Success

    Seoheung posted sales of KRW 190 billion (+7.0% YoY), operating profit of KRW 20.1 billion (+113.8% YoY), and net income of KRW 23.9 billion in Q2 2025, significantly surpassing market consensus. The explosive growth in operating and net profit, in particular, has heightened investor expectations.

    2. Reasons Behind the Surge

    This earnings surprise is attributed to the robust growth of the capsule business and the stable growth of the raw materials and cosmetics businesses. Seoheung’s dominant market position with a 95% share in the domestic hard capsule market and the expansion of its Vietnam plant to target overseas markets served as key growth drivers.

    • Capsule Division: Steady demand growth due to the aging population and growth of the health functional food market.
    • Raw Materials Division: Increased demand for gelatin and collagen, and market expansion of subsidiary JelTec.
    • Cosmetics Division: Growth of the OEM/ODM market and expansion of supplies to major corporations.

    3. Future Stock Outlook and Investment Strategy

    This earnings announcement serves as a crucial opportunity to confirm Seoheung’s growth potential and improved profitability. A positive market response and stock price momentum are expected, and robust growth is projected in the mid-to-long term. However, a prudent investment strategy should be established, considering risk factors such as fluctuations in exchange rates and raw material prices, and the possibility of a global economic slowdown.

    4. Action Plan for Investors

    While Seoheung’s investment appeal is high, individual investment preferences and goals must be considered before making investment decisions. It’s crucial to seek expert advice and consistently monitor the company’s financial status and market conditions. Investing in Seoheung’s growth potential from a long-term perspective is advisable.

    What are Seoheung’s main businesses?

    Seoheung operates capsule, raw materials (gelatin, collagen), and cosmetics businesses. It holds a dominant position in the capsule segment with a 95% market share in Korea.

    What are the main reasons for this earnings surprise?

    The main reasons are analyzed to be the robust growth of the capsule business, the stable growth of the raw materials and cosmetics businesses, and the strengthening of overseas market targeting through the expansion of the Vietnam plant.

    What is the future investment outlook for Seoheung?

    Positive. This earnings announcement has confirmed Seoheung’s growth and profitability improvements, and robust growth is expected in the mid-to-long term.