Kolmar Korea is an ODM company that develops and manufactures cosmetics on behalf of global clients such as L'Oreal and domestic indie brands; instead of selling its own brand, it makes skincare, sun care and makeup well, and it holds HK inno.N - maker of the acid-reflux drug K-CAB - as a consolidated subsidiary. In May 2026 it announced a plan to expand production capacity through a new subsidiary facility investment and confirmed a record-high Q1 operating profit, and in June the Kolmar Group became the first cosmetics ODM company designated as a large business group. What stands out lately is that the core ODM business riding the K-beauty export boom, together with K-CAB as a separate growth engine, eases the valuation burden on this year's expected earnings as a strength, while the debt ratio is high at 379.8% and the current ratio is below 100%, so earnings improvement must continue for the financial burden to ease, and with the share price near its 52-week high, near-term volatility should be factored in.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 379.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 74.2%).
- Revenue rose 11.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.5% higher than a year earlier.
- ROE is 13.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.8%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kolmar Holdings 26.31% (corporate)
Controlling bloc incl. related parties 26.56%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Kolmar Korea is an ODM (original design manufacturer) company that develops and manufactures cosmetics on behalf of others.
- It takes on the formulation development and production of products that global heavyweight clients such as L'Oreal and domestic indie brands will sell, making skincare (about 55% of domestic items), sun care (about 26%) and makeup (about 14%).
- In other words, rather than selling its own brand, it earns money as a 'factory-cum-research lab that makes other brands well.' On top of this, it holds HK inno.N, a pharmaceutical company with the acid-reflux drug K-CAB (2025 revenue ₩1,063.1 billion), as a consolidated subsidiary, so the company's results combine cosmetics manufacturing margins and pharmaceutical drug sales.
- The forces that lifted recent results are expanded export volumes in sun care and skincare, new orders from global premium brands, and expanded sales channels into non-U.S. regions such as Europe.
- The latest close is ₩102,800 and the market cap is ₩2.4 trillion.
- The price sits above the 20-day line (₩96,910) and above the 60-day line (₩91,190).
- Above both the short-term and mid-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge that weighs the strength of gains against losses over the last 14 days on a 0-100 scale) is 55.8, a neutral level.
- The one-month change is +23.9%, the three-month change is +37.6%, and the position versus the 52-week high is -12.7%.
- Relative strength against the KOSPI is 52 (1-99, a conversion of returns versus the index over the past year that weights recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 47% of all stocks by strength.
- Over the past three months it led the index by 7.8%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On valuation, the P/E ratio (how many times one year's earnings the share price represents) of 20x looks high versus peers, but this should be viewed as being on 'last year's results,' just recovering from earnings that had been depressed for several years.
- ROE (how much is earned in a year on equity) is a healthy 13.7% and the operating margin is 8.8%.
- The weakness to watch is the financial structure.
- The debt ratio (debt against equity) is high at 379.8%, because borrowing burdens from the HK inno.N acquisition and the like remain.
- The current ratio (assets that can be readily turned into cash against debt due within a year) is also 74.2%, below 100%, so short-term liquidity is not comfortable.
- That said, with an interest coverage ratio of 4.45x, operating profit sufficiently covers interest, so in a phase of rising earnings the financial burden gradually eases.
- Revenue grew about 14% a year on average over five years (₩1.59 trillion in 2021 to ₩2.72 trillion in 2025), showing steady top-line growth, and the recovery in profit in particular is steep.
- Net profit normalized quickly from a loss of ₩22.0 billion in 2022 to ₩5.2 billion in 2023, ₩90.1 billion in 2024 and ₩125.1 billion in 2025.
- In Q1 2026 it posted revenue of ₩728.0 billion (+11.5%), operating profit of ₩78.9 billion (+31.6%, a record high) and net profit of ₩60.0 billion (+158.7%).
- Looking at the domestic standalone entity alone, revenue was ₩343.0 billion (+25%) and operating profit ₩51.2 billion (+51%), a quarterly record, with the axes of growth being the high growth of the largest sun-care client and new orders from global luxury brands.
- The U.S. entity saw revenue fall on lower orders from a major client, but as early fixed costs from the second plant eased, it narrowed its loss and entered an improvement track.
- Given this earnings trajectory and the Q2 sun-care peak season, this year's net profit looks set to rise sharply from last year, so that valuation on 'this year's expected earnings' falls markedly below the level on last year's results.
- Recent disclosures lean toward growth.
- In May 2026, a subsidiary-related new facility investment disclosure announced a plan to expand production capacity, and in the same month a quarterly report confirmed a record-high Q1 operating profit.
- In June, a large-business-group status disclosure appeared, reflecting that the Kolmar Group became the first in the cosmetics ODM industry to be designated a large business group.
- Frequent disclosures of investor-relations events show the company is actively communicating with investors.
- Meanwhile, consolidated subsidiary HK inno.N's drug K-CAB is in the U.S. approval process, so if it succeeds it could become another axis of mid-term growth.
- The strengths are clear.
- The core cosmetics ODM business is growing both margins and scale on the back of the K-beauty export boom, and pharmaceutical subsidiary HK inno.N adds a separate growth engine with the drug K-CAB.
- As earnings recover quickly from a trough, even though the P/E on last year's results looks high, the valuation burden eases considerably on this year's expected earnings.
- On the flip side, the point to note is the financial structure.
- The debt ratio is high at 379.8% and the current ratio is below 100%, so earnings improvement must continue for the financial burden to unwind.
- Also, with the share price near its 52-week high and the RSI in overheated territory, volatility should be factored in on near-term entry.
- In sum, it is strong under conditions where export demand and earnings improvement continue, and weakens if cosmetics exports slow or issues at the U.S. entity or in the exchange rate flare up.
🔎 Valuation vs peers Fairly valued
A peer set of domestic cosmetics ODMs (original design manufacturers) and Kolmar affiliates.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Cosmax | 16.00x | 3.53x | 22.05% |
| Cosmecca Korea | 20.10x | 3.61x | 17.98% |
| Kolmar BNH | — | 0.69x | -6.41% |
The P/E of 20x on last year's results is higher than direct peers Cosmax (15x) and Cosmecca Korea (19x). But Kolmar Korea's earnings had been depressed by past acquisition-borrowing burdens and are recovering quickly through 2024-2026, so the multiple on last year's results easily overstates the true earning power. Viewed on this year's expected earnings, the P/E falls to about 14x, effectively dissolving the premium versus peers. Adding that, unlike competitors that are single cosmetics ODMs, it has a separate growth axis in a pharmaceutical drug (K-CAB), the current valuation is judged to be a fairly valued level reflecting earnings improvement and a growth option, rather than an unreasonable overvaluation. That said, the high debt ratio is a risk factor that should be reflected in the valuation.
Price history Close · MA20 · MA60
The latest close is ₩102,800 and the market capitalization is ₩2.4 trillion. The price sits above its 20-day moving average (₩96,910) and above its 60-day moving average (₩91,190). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 55.8, a neutral level. The one-month change is +23.9%, the three-month change is +37.6%, and the position relative to the 52-week high is -12.7%. Relative strength versus the KOSPI is 53 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 53% of all stocks. Over the past three months it outpaced the index by 7.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +7.80% / 6M -0.93% / 12M -56.02%
Key metrics vs sector median
Valuation
The P/E of 19.40x is above the sector median (14.79x). The P/B of 2.67x is above the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.4x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 13.7%, above the sector average (4.0%). The operating margin is 8.8%. The debt ratio is 379.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $1.6B | $1.8B | +11.03% ↓ slower |
| Operating profit | $90.2M | $128.5M | $158.8M | +23.60% ↓ slower |
| Net profit | $3.4M | $59.7M | $82.9M | +38.86% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.2B | $1.4B | $1.6B | $1.8B |
| Operating profit | $55.9M | $48.6M | $90.2M | $128.5M | $158.8M |
| Net profit | $23.7M | -$14.6M | $3.4M | $59.7M | $82.9M |
| Revenue CAGR | 4-yr avg 14.46% | ||||
Revenue rose 11.0% year over year (2023 ₩2.2 trillion → 2024 ₩2.5 trillion → 2025 ₩2.7 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 23.6% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.5%. The two-year revenue CAGR is 12.4%. In the most recent quarter (Q1 2026), revenue was 11.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.7% points to solid profitability.
- Revenue grew 11.0% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 379.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 74.2%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-21FilingDisclosure of a major management matter such as a new subsidiary facility investment - a plan to expand production capacityA growth investment via mid-term expansion to meet order growth. A near-term capital-expenditure increase factor, but capacity expansion strengthens the medium-to-long-term revenue base. Source
- 2026-05-14EarningsQ1 2026 quarterly report - consolidated operating profit ₩78.9 billion (record high), net profit ₩60.0 billion (+158.7%)Earnings surged on expanded sun-care and skincare exports and new premium orders. A core result confirming the earnings inflection. Source
- 2026-05-22FilingDisclosure of a major management matter relevant to investment judgmentA voluntary disclosure of a management matter that could affect investment judgment. Provides information on the company's business and investment direction. Source
- 2026-06-01FilingLarge-business-group status disclosure - reflecting the Kolmar Group's designation as a large business groupThe first designation as a large business group in the cosmetics ODM industry. A boost to group standing but also a factor expanding disclosure and regulatory obligations. Source
- 2026-05-28FilingReport on changes in shares held by the largest shareholder and othersA disclosure related to changes in controlling-shareholder holdings. A governance-monitoring item. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-10Disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-27Disclosure
- 2026-05-22Disclosure
- 2026-05-21Disclosure
- 2026-05-21Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-13Disclosure
- 2026-05-11Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.