[Click eStock] "Cosmecca Korea, Revenue Diversification... High Potential in Performance and Stock Price"
As the popularity of indie brand cosmetics related to health and beauty (H&B) continues, the performance and stock price growth of original equipment manufacturer (OEM) and original design manufacturer (ODM) companies like 'Cosmeca Korea' are expected to persist.
On the 26th, Hyunjin Park, a researcher at Shinhan Investment Corp., stated in a report, "Demand for low-priced indie beauty brands is continuously increasing in Korea, Japan, and the United States," and evaluated that "the performance of Korean manufacturing corporations engaged in OEM/ODM is also showing strength."
Cosmeca Korea achieved sales of 122.7 billion KRW and operating profit of 15 billion KRW in the fourth quarter of last year. These figures represent increases of 15% and 300%, respectively, compared to the previous year. On an annual basis, sales and profits are estimated to have grown by 18% and 374%, respectively.
Researcher Park said, "As orders from new overseas clients expand, sales are diversifying by region," adding, "In the Korean corporation, demand for cleansing, hair, and body products is increasing, and in the United States, requests for new OTC product development continue steadily." He particularly explained, "Among similar companies, it is the only one steadily increasing orders for the U.S. market through its U.S. subsidiary, Englewood Lab."
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He forecasted, "Although the stock price has risen strongly over the past year, the outlook for further upside is bright," and predicted, "With the increasing operating leverage effect, both performance and stock price will continue their growth trend."
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