NH Investment & Securities forecasts a sharp rise in Cosmax’s overseas revenue ratio, projecting improved profit margins through gradual recovery in affiliate earnings. The firm maintains a ‘Buy’ rating and raises the target price to 240,000 won from the prior close of 189,900 won.
Cosmax’s recent results align closely with market consensus forecasts.
Robust Sales Growth Across Regions
Over the past four quarters, consolidated sales climbed 8% year-over-year to 601 billion won, while operating profit increased 3% to 40.9 billion won.
China sales surged 17% to 181.4 billion won, exceeding expectations by 23%. Gwangju operations also expanded by 9%.
Growth momentum arises from synergies in collaborative business lines and rising demand from major clients. In Gwangju, JV SkinCare brand sales benefited from strong consumer loyalty, with Southeast Asia exports, especially to Indonesia, gaining share.
U.S. sales rose 24% to 37 billion won, supported by customer diversification in the western region. Operating losses there contracted to approximately 2 billion won.
Expert Outlook
Jeong Ji-yoon, research fellow at NH Investment & Securities, noted, “Over the past four quarters, the China subsidiary restored quarterly sales to the 180 billion won level for the first time in four years, while the U.S. unit shrank operating losses to around 2 billion won.”
She continued, “Ongoing revenue stabilization at overseas affiliates, combined with optimized direct operational structures, will catalyze substantial market shifts.”
