[Edaily Reporter Kim Hyung-il ] Daol Investment & Securities projected that COSMECCA KOREA CO.,LTD.(241710)’s third-quarter operating profit would fall slightly short of market expectations. However, considering the recovery in order volumes from some clients starting in the fourth quarter, the firm maintained its “Buy” rating and raised the target price from 130,000 won to 150,000 won.

On the 6th, Park Jong-hyun, an analyst at Daol Investment & Securities, projected that third-quarter consolidated revenue would reach 222.3 billion won, a 22% increase year-over-year, while operating profit would rise 16% to 31.6 billion won. He estimated that operating profit would fall slightly short of the market consensus of 32.3 billion won.

The Korean subsidiary is expected to continue its strong growth. Revenue is projected to reach 177.9 billion won, a 25% year-over-year increase, while operating profit is forecast to rise 26% to 23.1 billion won. For the Korean subsidiary, growth is expected to continue at a high pace following the second quarter, driven by repeat orders from existing derma clients and new body and mist products.

For the U.S. subsidiary, revenue is estimated to be 52.3 billion won, a 15% decrease year-over-year. However, as this reflects a slowdown in growth driven by agents as well as volume adjustments by existing clients, the company projected that volumes from its top client—which had been expected to remain stagnant—will begin to recover in the fourth quarter and gain momentum next year.

The Chinese subsidiary is expected to post revenue of 31.7 billion won, a 4% increase year-over-year. However, it is projected to continue posting an operating loss. Analysts attribute this to the impact of the seasonal off-peak period, new product promotions, and the restructuring of its online business operations.

A recovery in performance is expected starting in the fourth quarter. Consolidated revenue for the fourth quarter is projected to reach 223.6 billion won, a 25% increase year-over-year, while operating profit is forecast to rise 31% to 37.6 billion won. The firm anticipates that the Korean subsidiary will continue its strong growth in the fourth quarter, while the Chinese subsidiary will show signs of recovery.

Analyst Park highlighted the growth momentum of the Korean subsidiary. Although the stock price recently declined due to a shortage in container supply from its top derma client, he interpreted this not as a short-term earnings concern but as a sign that client demand is outpacing supply.

COSMECCA KOREA CO.,LTD. plans to begin operations at its new Ochang plant, which has a capacity of 200 billion won. Gradual operations are set to begin in the second half of next year, with full-scale operations expected in 2028. Analyst Park also noted the potential for an improvement in the operating profit margin (OPM) through the in-house production of previously outsourced work.

Daol Investment & Securities estimated COSMECCA KOREA CO.,LTD.’s consolidated revenue for this year at 857.1 billion won and operating profit at 116.6 billion won. For next year, the firm forecast revenue of 1.0023 trillion won and operating profit of 150.8 billion won.