[Click eStock] "Cosmax, Q2 Earnings Surprise Thanks to Hygiene Products"

Shinyoung Securities Issues 'Buy' Investment Opinion and Sets Target Price at 150,000 Won... Closing Price on 13th Was 101,000 Won

[Asia Economy Reporter Kum Boryeong] Cosmax recorded an earnings surprise in the second quarter, prompting Shin Young Securities to issue a 'Buy' investment rating with a target price of 150,000 KRW. The target price was raised from the previous 120,000 KRW. The closing price on the 13th was 101,000 KRW.

According to Shin Young Securities on the 14th, Cosmax's second-quarter results showed an operating profit of 26.2 billion KRW and sales of 379.2 billion KRW, representing increases of 99.2% and 14.1% year-on-year, respectively. The operating profit margin was 6.9%.

Researcher Shin Suyeon of Shin Young Securities explained, "Cosmax's second-quarter results exceeded consensus estimates," adding, "In particular, operating profit surpassed consensus by 51.4% due to profitability improvements in the domestic corporation and a turnaround in the Shanghai corporation."

The main driver of the strong second-quarter performance was an increase in sales of hygiene products. With global demand for hygiene products expanding, the company's hygiene product-related sales reached 45 billion KRW in the first half of this year on a consolidated basis.

Cosmetic orders from domestic and Chinese markets have maintained a steady level. In the case of the Shanghai corporation, the proportion of online customers increased to around 40%. It is analyzed that meaningful performance improvements were seen by applying the efficiency measures carried out by the domestic corporation last year to the Shanghai corporation as well. These efficiency measures included reducing turnkey orders with low profitability and inventory burdens and installing partial automation equipment.

Researcher Shin said, "The second-quarter results show that the Shanghai corporation's efforts to secure online customers have begun to yield significant results," adding, "The deficit level in the U.S. is expected to gradually improve due to the expansion of orders for hygiene products, which have relatively good profitability."

This content was produced with the assistance of AI translation services.