[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 6th that it is maintaining its “Buy” investment rating and target price of 250,000 won for COSMAX, INC.(192820).

Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated, “HANKOOKCOSMETICS’s exports in June reached a record high. We believe the earnings trend for major player COSMAX, INC. will follow suit,” adding, “Earnings visibility has improved, as the earnings base for the standalone entity is favorable in the second half, coupled with double-digit sales growth in the U.S. and China during the first half, and our expectation that the U.S. subsidiary will return to profitability starting in the second quarter.”
He projected that second-quarter consolidated revenue would reach 738.5 billion won (+18% year-over-year) and operating profit 69.5 billion won (+14%), in line with market consensus.
Domestic revenue is estimated at 485.2 billion won (+15%), with operating profit at 54.0 billion won (+8%). Analyst Jeong explained, “The company focused on producing strategic products such as essences, mists, and creams for its skincare brands,” adding, “Production efficiency for gel masks—which had previously exerted downward pressure on margins—has gradually improved, and the decline in sales for color cosmetics brands is also showing signs of moderating.” The operating profit margin is also expected to improve to 11.1% compared to the previous quarter.
Overseas, sales in China were estimated at 179.1 billion won (+21%), with Shanghai up 21% and Guangzhou up 16%. He emphasized, “In Shanghai, profitability (estimated operating profit margin of 5%) is improving due to increased orders from existing clients and the launch of new brands, while in Guangzhou, margins are expected to decline due to higher commission fees resulting from expanded exports.”
Additionally, U.S. sales are projected to reach 45 billion won (+50%), and the company is expected to return to profitability with an operating profit of 1.8 billion won, driven by client diversification and the launch of hit color cosmetics products. Sales in Indonesia and Thailand are forecast to reach 27.2 billion won (+30%) and 25.4 billion won (+10%), respectively, showing a favorable trend despite concerns about competition in the Southeast Asian market.