[Click eStock] "CNC International expects 20% annual sales growth over the next 3 years... Target price up"

Target Price Raised by 10% Compared to Previous Level

On the 27th, KB Securities forecasted that C&C International's sales will grow at an average annual rate of 20% over the next three years and raised the target stock price from 80,000 KRW to 88,000 KRW. The investment rating was maintained as 'Buy.'

Shinae Park, a researcher at KB Securities, explained, "The target price increase is due to upward revisions of operating profit estimates by 10%, 11%, and 10% for 2024, 2025, and 2026, respectively," adding, "Based on the ability to develop high-quality innovative products, domestic and overseas orders are continuously expanding, and sales are expected to grow at an average annual rate of 20% over the next three years."

C&C International achieved its highest quarterly sales in the fourth quarter of last year. The consolidated sales for Q4 increased by 64% year-on-year to 63.1 billion KRW, and operating profit rose by 95% to 9.1 billion KRW. Researcher Park analyzed, "Sales exceeded the consensus (average securities firm forecast) by 4%, but operating profit fell short by 15% due to the reflection of a year-end performance bonus of 2.3 billion KRW," adding, "Excluding the performance bonus, the results were solid and exceeded market expectations."

KB Securities projected C&C International's performance this year to be sales of 280.7 billion KRW and operating profit of 44.9 billion KRW, representing increases of 27% and 40% respectively compared to the previous year. Researcher Park stated, "Domestic sales are expected to grow by 26%, and despite the base effect, benefits are anticipated from the expansion of overseas sales by domestic clients," further explaining, "Sales in North America and China are estimated to grow by 33% each. In North America, in addition to the two existing major clients, new indie brand clients are expected to be acquired this year, and orders from global cosmetics companies, with whom product discussions have been ongoing for a considerable period, are also expected."

She added, "In China, until last year, over 90% of sales contributions came from one client, but this year, more than two local brands are expected to become clients."

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