[Edaily Reporter kyoungeun kim ] Forecasts indicate that COSMAX, INC.(192820)will post its best-ever quarterly earnings in the third quarter, exceeding market consensus. Analysts note that the company’s growth trajectory is steepening again, driven by strong exports of basic skincare products, a recovery in the previously sluggish color cosmetics category, and the strong performance of Chinese cosmetics (C-Beauty).

In a report released on the 7th, Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, estimated that COSMAX, INC.’s third-quarter consolidated revenue would reach 807.5 billion won—a 38% increase year-over-year—and operating profit would rise 81% to 77.2 billion won. The operating profit represents a record quarterly high, exceeding the consensus estimate by 14%. The firm maintained its “Buy” rating and raised the target price from 320,000 won to 370,000 won. The stock closed at 298,000 won the previous day.

Analyst Jeong stated, “Quantitative and qualitative growth is continuing, driven by standalone revenue growth that exceeds market expectations and simultaneous improvements in the profitability of overseas subsidiaries,” adding, “The era of quarterly revenue exceeding 800 billion won has begun.” The target price was calculated by applying a target price-to-earnings ratio (PER) of 18 times to the estimated earnings per share (EPS) for 2027.

He cited a “three-pronged approach” as the basis for this growth. Analyst Jeong explained, “HANKOOKCOSMETICS exports grew 39% year-over-year in the third quarter and hit a record high of $1.2 billion in September.” He added, “The color cosmetics category, which had been sluggish for about a year starting in the second half of last year, is undergoing a turnaround in the third quarter thanks to new product launches and promotional efforts.” He further predicted, “The increase in K-Beauty exports to Southeast Asia is also notable; the company is expected to secure mid- to long-term orders by riding the wave of export growth from local clients.”

Revenue for the Korean subsidiary is projected to reach 556.1 billion won, a 45% increase, while operating profit is expected to rise 78% to 61.2 billion won. Despite fewer operating days due to summer vacations and the Chuseok holiday, the operating profit margin is expected to rise by 2 percentage points to 11.0%, driven by the stabilization of gel mask yield, a turnaround in color cosmetics brand sales, and improved production efficiency focused on high-growth skincare products such as essences and mists.

Overseas subsidiaries are also expected to show balanced growth. Sales in China are projected to rise 24% to 172.9 billion won, while sales in the U.S. are expected to increase 72% to 63.5 billion won, driven by leverage effects from reorders by indie clients and an expansion of new product orders. Sales in Indonesia and Thailand are also forecast to post solid growth, reaching 28 billion won (up 30%) and 19.2 billion won (up 26%), respectively.