[Edaily Reporter Kwon Oh Seok ] COSMAX, INC.(192820)’s stock price is showing strength in early trading. It appears that buying interest is surging on the back of positive outlooks from the securities industry.

According to MP Doctor on the 6th, COSMAX, INC. is trading at 179,700 won as of 9:14 a.m., up 6.77% from the previous trading day.
Earlier today, NH INVESTMENT & SECURITIES released a report stating that it maintains a “Buy” rating and a target price of 250,000 won for COSMAX, INC.
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 expectations that the U.S. subsidiary will return to profitability starting in the second quarter.”
The firm 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 consensus estimates. Domestic revenue was estimated at 485.2 billion won (+15%), with operating profit at 54.0 billion won (+8%).
Overseas, revenue in China is estimated at 179.1 billion won (+21%), with Shanghai up 21% and Guangzhou up 16%. He emphasized, “In Shanghai, profitability (estimated operating 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 at 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 projected at 27.2 billion won (+30%) and 25.4 billion won (+10%), respectively, and are expected to show a favorable trend despite concerns about competition in the Southeast Asian market.