[Click eStock] "Cosmax, Target Price Raised on Profitability Improvement"

Yuanta Securities has raised the target price of Cosmax from 185,000 KRW to 220,000 KRW. This is due to the expected increase in exports driven by the recovery of the Chinese market this year.

Cosmax recorded consolidated sales of 558 billion KRW and an operating profit of 39.8 billion KRW in the fourth quarter of last year. These figures represent increases of 28% and 77%, respectively, compared to the same period last year.

Researcher Lee Seung-eun of Yuanta Securities explained, "The rise was due to a decrease in fixed costs from increased sales, strong sales of high-margin makeup products, and a high-margin policy targeting indie brands."

In the fourth quarter conference call last year, Cosmax set goals of 20% domestic sales growth this year, 50% growth in the sunscreen category compared to the previous year, and a 10% operating profit margin.

Researcher Lee said, "The Guangzhou subsidiary aims for low double-digit growth of around 10%, YATSEN expects 20% growth compared to last year, the Indonesian subsidiary targets 25% sales growth, and the Thai subsidiary aims for 50% sales growth. The U.S. subsidiary targets sales growth of over 10%."

He added, "The stock price is expected to show a positive trend in 2025, supported by stable growth and improved profitability in both domestic and overseas markets. In particular, the expansion of new indie brands and exports, the recovery of the Chinese market, and the high growth in the Southeast Asian market are expected to have a positive impact on the stock price."

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