SUN&L targets 20% ROE by 2030 in shift to beauty packaging

SUN&L, a Kospi-listed company, announced Thursday that it has disclosed a mid-to-long-term growth vision to transform itself from a traditional timber company into a global lifestyle beauty packaging firm.

The company set a target of expanding its beauty segment's share of total sales from the current 48 percent to 75 percent by 2030, while achieving companywide sales of 280 billion won ($180 million). SUN&L plans to drive average annual growth of 20 percent in the lifestyle beauty segment by strategically introducing high-value-added products such as essence pumps and trigger dispensers, while maintaining an operating profit margin of at least 8 percent.

The company is also moving to strengthen profitability. It plans to lift its return on equity — which stood at minus 1.6 percent as of 2025 — to 20 percent by 2030. SUN&L also aims to normalize its price-to-book ratio from the current 0.13x to around 2.0x.

By the end of this year, the company will wind down loss-making overseas subsidiaries, including one in New Zealand. It plans to restructure its interior segment portfolio and return the consolidated operating bottom line to profit by 2027. SUN&L will also reduce its debt ratio from the current 114 percent to below 70 percent by 2030 through the sale of idle real estate in Incheon, Cheonan and other locations, valued at a combined 260 billion won. The company has already completed contracts worth 57.4 billion won, equivalent to 22 percent of that target.

Dividend payments will resume in line with the company's earnings turnaround. SUN&L plans to raise its payout ratio as profits grow, and intends to reduce information asymmetry with shareholders by holding regular investor relations sessions led by senior management and establishing a dedicated IR team.

"The corporate value enhancement plan reflects our strong commitment to earning a reappraisal of our transformation," a SUN&L official said. "We will transparently report on progress through at least one disclosure per year and achieve a new leap forward together with our shareholders."