[Click eStock] "Cosmax, Steady Sales Flow in 3Q... Target Price Up"

NH Investment & Securities raised the target price for Cosmax from 160,000 KRW to 180,000 KRW on the 8th, expecting steady sales performance even in the off-season third quarter. The investment rating was maintained as 'Buy.'

Jiyoon Jeong, a researcher at NH Investment & Securities, explained, "Considering the continued increase in export volumes to U.S. and Southeast Asian indie brand clients, the influx of Chinese group tourists around the Mid-Autumn Festival (Chuseok), and the activation of health & beauty (H&B) channels, we have revised the domestic corporate sales growth rates for this year and next year to 22% and 11%, respectively, and accordingly raised the operating profit estimates."

Despite being the off-season, results exceeding previous estimates are expected in the third quarter of this year. NH Investment & Securities forecasts Cosmax's consolidated sales for the third quarter to increase by 13% year-on-year to 449.3 billion KRW, and operating profit to rise by 86% to 36.8 billion KRW.

The second half of the year is expected to hinge on overseas subsidiaries. Researcher Jeong stated, "There is additional upside potential depending on the inventory accumulation level for China's Singles' Day shopping festival and the acquisition of new clients in the U.S. In particular, the U.S. subsidiary plans to actively attract new indie brand clients by opening a sales office in LA in the second half of the year. Since the existing NuWorld factory's production facilities and workforce are focused on color cosmetics, we believe that with future efficiency improvements in basic production processes, the monthly break-even point (BEP) based on operating profit could be reached within the second half of this year."

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