Why Singer Kim Tae Wook’s Cosmetics Company Has Doubled in Value This Year
Cosmetics company iFamily, led by Kim Tae-wook, a singer, producer, and husband of famous actress Chae Shira, has been the talk of the stock market this year, with its stock price nearly doubling. Unlike the spotlight it received at the time of its initial public offering (IPO), the company’s stock price has been stagnant since its listing, but it is finally seeing the light of day in its third year of trading as earnings expectations are rising.
On May 5, the company closed at 25,250 won, up 102.81 percent from토토사이트 12,450 won at the end of last year, according to securities data.
It also hit 26,250 won during the day, the highest price since its listing on Oct. 28, 2021.
iFamily is a cosmetics company founded by CEO Kim Tae-wook. Kim Tae-wook debuted as a singer in 1991 and married actress Chae Shira in 2000, with whom he has one son and one daughter. He founded the wedding service company iWedding Networks in 2000. The company changed its name to its current name in 2012 and entered the cosmetics business in 2016. Currently, its flagship cosmetics brand ‘Rom &’ accounts for more than 95% of the company’s total sales.
Thanks to the success of its cosmetics business, iFamilyS successfully listed on the KOSDAQ in 2021. With the recognition of CEO Kim Tae-wook, iFamily received a lot of attention from the IPO market, but the stock price was sluggish. The initial public offering price was set at 12,500 won, far below the desired price band of 19,500 to 24,000 won (based on the revised stock price). On the first day of trading, the stock closed at 12,700 won. The company’s stock price has been hovering around the 9,000-16,000 won range for the past year. In the middle of last year, the company also issued a one-for-one free capital increase, but it didn’t have a significant impact on the stock price.
After seemingly fading away from the market’s attention, the company’s stock price doubled in the first five months of this year. On a monthly basis, it has been rising nonstop for six months.
Kim Tae-wook holds 2,348,818 shares (27.62%) of the company’s stock. This is worth about 60 billion won at the current stock price.
At the time of the IPO, Kim planned to sell around 90,000 shares of his stake in the company. However, when the demand forecast for the IPO was weak, he canceled the plan. It turned out to be the right choice. The stock price is now higher than the top of the initial public offering price band.
Apple’s stock price since going public [Source: Google Finance].
The company’s stock price has risen significantly this year because its unique marketing approach has gone viral.
The company’s cosmetics brand, Rom &, has a beauty YouTuber as its creative director, who creates content about the entire product process. It’s reminiscent of a K-pop idol audition program.
In the first quarter of this year, the company posted sales of 32.8 billion won and operating profit of 4.7 billion won, its best quarterly performance to date. Sales were up 47% year-on-year and operating profit was up 34%. The reopening boosted demand for cosmetics in Korea, and the company’s strong performance in the Japanese market contributed to the surge. In the first quarter, exports to Japan grew 35% year-on-year. The company’s sales in Japan are expected to grow even more steeply now that it has opened a store in Lawson, the country’s leading convenience store chain, at the end of March.
“We are looking forward to the dynamic outward growth of Mr. iPad this year,” said Park Eun-jung, a researcher at Hana Securities. “In particular, Japan recorded sales of 29.6 billion won last year, but this year we expect a 50% increase to 44.5 billion won.”