[Click eStock] "Cosmax, K-Beauty External Growth Continues... Target Price Up"

Target Price Raised from 180,000 KRW to 210,000 KRW

Daishin Securities raised the target price for Cosmax from 180,000 KRW to 210,000 KRW, citing continued strong sales growth driven by favorable cosmetics market conditions in the Southeast Asian region. The investment rating was maintained at 'Buy.'

Cosmax reported Q4 sales of 558 billion KRW, a 28% increase year-on-year, and operating profit of 39.8 billion KRW, up 77%, slightly exceeding market expectations. Domestically, steady orders from indie brands contributed to sales of 346.3 billion KRW. Overseas, sales in Guangzhou, China grew 43% due to hit products from newly acquired clients, while sales in Indonesia and Thailand increased by 41% and 78%, respectively, driven by expanding local cosmetics demand and strong exports to neighboring countries. However, sales in the U.S. declined 21% due to reduced orders from existing clients.

Researcher Jeong Hansol of Daishin Securities analyzed, "In 2025, based on the increased global penetration of K-Beauty, strong export performance from indie brands is expected to continue, supporting steady growth in the domestic corporation's scale. In particular, the favorable cosmetics market conditions in Southeast Asia are expected to sustain high sales growth throughout the year."

Gradual improvement is also anticipated in the previously underperforming markets of China and the U.S. Researcher Jeong explained, "In the U.S., sales to new clients are expected in the second half of the year due to the operational effects of the Western office opened last October. In China, various strategies such as attracting new brands and transferring production volumes are expected, so if consumption recovers, there remains potential for further upward revisions in performance."

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