Korea Small Cap Gem #45: Genic
Genic [Bullish]
Genic is a turnaround story. Genic is one of the largest ODM companies that make beauty face masks in Korea.
Genic is one of the biggest suppliers of hydrogel based face masks of the Biodance brand which has been experiencing an excellent demand in global markets, including the United States.
Despite surging growth in sales and profits, valuation multiples remain reasonable. It is trading at EV/EBITDA of 12.7x and P/E of 14.2x, based on recent prices and LTM financials.
Genic - A Turnaround Story
Genic is a turnaround story. There are three key investment thesis to this company.
Genic is one of the largest ODM companies that make beauty face masks in Korea. Genic is one of the biggest suppliers of hydrogel based face masks of the Biodance brand which has been experiencing an excellent demand in global markets, including the United States.
Driven by the strong demand for hydrogel-based Biodance face masks, Genic's sales increased by 77.8% YoY in 2024. Its sales continued to increase by 176.9% YoY in 1H 2025. Its operating margins improved from 9.9% in 2Q 2024 to 22.2% in 2Q 2025.
Despite surging growth in sales and profits, valuation multiples remain reasonable. It is trading at EV/EBITDA of 12.7x and P/E of 14.2x, based on recent prices and LTM financials.
Face Mask is a Big Business
The global face mask is a big business growing at a healthy rate. Different market research firms provide various sizes of the global face mask market. The sheet face mask market is a major part of this, with Korean brands like Biodance gaining traction through viral products and strategic retail expansions. While some reports estimate a worldwide revenue of around $4.14 billion in 2025 for all types of face masks (including PPE), the beauty facial mask market specifically was estimated at $6.8 billion in 2022 and is projected to grow to $11.2 billion by 2032. The U.S. is also a significant market for face masks, with continued demand and increasing consumer interest.
More than a decade ago, the Korean face masks (also called K-masks, beauty masks, or mask packs) enjoyed strong export sales (mostly to China and other countries in Southeast Asia). During the COVID-19 pandemic, the face masks (along with other cosmetics in general) resulted in a market downturn for a few years.
However, in the past 2-3 years, the Korean face masks (and many other Korean cosmetics and related beauty products) have enjoyed a sharp export growth once again. This time around, the key export regions include the USA, Japan, and Europe. The two main export markets include the United States and China. It is estimated that exports of Korean face masks will likely surpass 1.1 trillion won (US$0.8 billion) in 2025.
One of the key reasons why Korean face masks/cosmetics have been enjoying brisk sales in the USA, Japan, and Europe in the past 2-3 years (a lot more so than 10 years ago) is because of the exploding popularity of K-pop, K-drama, and other K-culture products on Netflix, etc. in recent years.
In addition, the continued advancements in functionality, formulations, and fabric technology of the K-masks have resulted in higher demand in global markets. Unlike in the past, simple price competition has been replaced by a technology-based premiumization strategy that has proven effective. Consumers are now demanding more than just moisturizing, they are also looking for effective ingredients, safety, and overall user experience.
The following are some of the key Korean cosmetic companies/brands that compete in the facial mask business.
Biodance (Beauty Selection) - Beauty Selection, a leader in second-generation sheet masks, boasting functionality and innovative ingredients, has seen sales more than triple, becoming an Amazon bestseller with its highly concentrated collagen gel mask. It has also entered major global retailers like Sephora and Galeries Lafayette.
Beauty Selection is the company name and Biodance is the brand name for the face masks. Beauty Selection's flagship product the "Bio Collagen Real Deep Mask" has enjoyed an exploding export growth in the past three years. Biodance garnered attention during Amazon's Black Friday 2024 event, holding the top spot for a long time in the "Beauty & Personal Care" category, a global brand battleground.
Beauty Selection had sales of 41.6 billion won, operating loss of 4.7 billion won, and net loss of 6 billion won in 2023. Bolstered by the surging sales of Biodance, Beauty Selection's sales jumped to 135.7 billion won, operating profit of 26.8 billion won, and net profit of 18.1 billion won in 2024.
Biodance was ranked number one on Amazon's face mask category for several months and has consistently ranked above 20 overall since June 2024. Beauty Selection was founded in 2020. Biodance's Collagen Real Deep Mask started to generate significant amount of sales starting late 2023. Currently, some of the top selling Korean face masks globally include PharmaResearch (214450 KS)'s Rejuran, VT (018290 KS)'s Reedleshot, and Beauty Selection's Biodance.
Biodance face mask (Source: Beauty Selection)
Biodance face masks (Source: Amazon)
Genic Co Ltd (123330 KS)- This is one of the largest ODM companies in Korea with deep expertise and manufacturing capacity for face masks. Genic is one of two major suppliers for Biodance face masks.
Encos (Unlisted) - This is a major competitor to Genic in the ODM cosmetics manufacturing sector in Korea. Encos started out as a mask pack manufacturer and has grown into a comprehensive skincare manufacturer. By the end of 2024, Encos has a sales mix of basic cosmetics 50%, mask packs 25%, and hair and make-up 25%.
Encos and Genic are two major ODM suppliers of Biodance face masks in Korea. Encos is also the ODM cosmetics provider to various other independent (indie) brands that are leading the K-beauty market, such as Medicube, Cosrx, Dr. Jart+, and Torridon. Encos had sales of 114.8 billion won, operating profit of 1.9 billion won, and net loss of 1.4 billion won in 2023. Encos had sales of 178 billion won, operating profit of 16.5 billion won, and net profit of 22.6 billion won in 2024.
Basically, Encos was the first ODM company that Biodence started to work with for the Biodance face masks. After a blistering demand for these Biodance face masks in the US and other parts, Encos could not keep up with the demand and thus Biodence started to work with Genic as well as the latter company had enough capacity to make the Biodance face masks.
Mediheal (L&P Cosmetics) - By diversifying its high-functioning line, including tea tree, collagen, and hyaluronic acid, the company achieved sales of over 300 billion won in 2024, with overseas sales accounting for over 40% of the total.
Cosmax Inc (192820 KS)- This is one of the largest ODM companies for cosmetics in Korea and a beneficiary of the growth in face masks and other Korean cosmetics.
JM Solution (GP Club) - JM Solution, which has made a comeback focused on the Chinese market, successfully rebounded through trendy product development, including the "Jellyfish Mask" and "Honey Glow Mask."
Dr. Jart+ - Founded in 2004, now owned by Have & Be Co, which has been wholly acquired by The Estée Lauder Companies. Combines dermatological science with aesthetic innovation.
Innisfree - A brand under AmorePacific. Focuses on natural ingredients, many sourced from Jeju Island; accessible price range.
Laneige - Another AmorePacific brand. Known globally for its hydration masks (e.g. sleeping masks) and water-science oriented formulations.
Sulwhasoo - Premium/luxury brand under AmorePacific. Uses traditional Korean “herbal” or oriental-medicine ingredients (notably ginseng) in its formulations.
Etude House - Owned by AmorePacific. More youthful, playful branding, wide range of sheet masks with fun packaging and colour-varied options.
CNP Laboratory — A more dermatologically-focused brand; popular for calming / sensitive skin mask treatments.
Beauty of Joseon - Known for its clean, traditional ingredient-driven formulations (rice, fermented ingredients, etc.). Ground Rice & Honey Glow Mask is one of its standout wash-off masks. Very popular internationally, especially among those who prefer gentler exfoliation and brightening without harsh chemicals.
Abib - “Minimalist” indie brand that focuses on gentle, non-toxic sheets and wash-offs. They have several best-selling masks like the Mild Acidic pH Heartleaf Fit sheet mask.
Best VIRAL K-BEAUTY MASKS! (Source: Youtube)
Company Background
Genic Co Ltd (123330 KS) is a Korean cosmetics company best known for water soluable hydrogel-based facial mask packs and related skin care products. Founded in 2001, Genic has positioned itself as a specialist in mask-pack technologies and sells through a mix of owned brands, OEM production, and export channels. Hydrogel and mask substrates require specialised polymers, cellulose (for bio-cellulose masks), active cosmetic ingredients, and sterile packaging.
Genic claims to have introduced one of the first hydrogel facial masks in Korea. The company also developed OEM/ODM capabilities to manufacture masks for other brands and to serve export customers. The main products of Genic include hydrogel facial masks, eye/gel patches, self-heating masks, and other skin care products including serums, cleansers, creams, and sunscreens.
Genic is a pioneer in the OEM and ODM of mask packs in Korea. In the 2010s, sales of its own branded Celderma Mask Pack achieved a surge in sales, led by successful marketing efforts led by actress Hayumi. However, the company entered a period of decline after its follow-up products failed to catch on. Since the 2010s, the company has shifted its focus from its own brands to OEM and ODM businesses. In 2015, Soulbrain (357780 KS) acquired the founder's 25.4% stake, marking a complete chance of ownership.
After struggling for nearly a decade, Genic has experienced a resurgence in global expansion of its cosmetic products (especially in the US, Japan, Europe, and other parts of the world). Biodance face masks have been experiencing a surging sales of its products across many parts of the world. Genic is the ODM manufacturer of many of Biodance's face masks.
