Hana Securities has projected strong third-quarter results for Cosmax, citing an expansion of K-Beauty's global momentum. The firm raised its target price to 380,000 won while maintaining a 'buy' rating.
In a report released on the same day, analyst Park Jong-dae noted, "Domestic profitability improved in the second quarter, the U.S. business turned profitable, and Southeast Asia's performance has turned around, alleviating various uncertainties."
Park forecasted that consolidated sales and operating profit for the third quarter could reach 823.8 billion won and 79 billion won, respectively, marking increases of 41% and 85% year-on-year. He described these figures as significantly exceeding market expectations.
He added, "The domestic headquarters is expected to achieve higher sales than in the second quarter, breaking seasonal trends. Exports of indie brands are performing exceptionally well, and contributions from global multinational corporations and overseas indie brands are increasing."
Furthermore, he stated, "In the U.S., there is a steady flow of reorder volumes from local indie and legacy clients, along with a significant increase in new orders. Notably, the contribution of indie brand sales is rising, with toner pads, eye patches, and hydrogel masks gaining popularity."
He also mentioned that the Shanghai branch is expected to see a 30% year-on-year growth driven by large local clients, while Guangzhou is projected to grow over 20% due to strong offline and export channels.
* This article has been translated by AI.
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