[Click eStock] CNC International, Quarterly Record Sales 'Target Price Raised'

Hana Securities announced on the 7th that it maintains a buy rating on C&C International and raises the target price from the previous 65,000 KRW to 70,000 KRW. This outlook is based on the expectation that the company will increase its client base both domestically and internationally, achieving record quarterly performance each quarter this year.

Park Eun-jung, a researcher at Hana Securities, stated, "The recent cosmetics market is sharply divided between brands that lead trends and those that fall behind, making it more important to understand which brands consumers are currently willing to purchase." She emphasized, "C&C International is expanding its scale as orders increase from trend-leading brands in domestic, North American, and Chinese markets, creating a virtuous cycle where the client base expands further both at home and abroad."

C&C International's operating profit for the second quarter was recorded at 10.3 billion KRW, a 207% increase compared to the same period last year. Sales rose 86% to 57.1 billion KRW. Both figures exceeded consensus estimates (average securities firm forecasts) by 10% and 7%, respectively. The company once again set a new quarterly sales record, surpassing 50 billion KRW in quarterly sales and 10 billion KRW in quarterly operating profit for the first time.

Researcher Park said, "Sales increased in all regions except Asia," adding, "In the domestic market, sales grew 49% by diversifying the client base." She further noted, "Demand in China remained strong, achieving high growth there as well," and added, "C&C International's top one and two clients by sales are both North American brands, and they have already supplied as much volume in the first half of this year as they did last year."

Regarding the performance, Park evaluated, "The development and manufacturing realization of trend-leading products are receiving attention both domestically and internationally," and said, "The virtuous cycle structure, driven by client expansion, increased consumer demand, and expanded production volume and product range, is resulting in exemplary performance with improved profit resilience due to the scale-up of sales."

C&C International's 2023 performance is projected to reach consolidated sales of 2.3 trillion KRW (+73%) and operating profit of 39.2 billion KRW (+125%). This is a 13% upward revision from previous estimates. The company is expected to record its highest quarterly performance each quarter due to 'domestic and international client expansion + CAPA expansion effect + reopening effect.' Researcher Park forecasted, "With increased orders from clients throughout the year and new orders from global clients in the second half, phased growth is expected," adding, "As new factories in Korea and China begin full-scale operations, the company will be able to handle the rapidly increasing order volume."

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