[Edaily Reporter KIM YOON-JEONG ] LS SECURITIES forecast that COSMAX, INC.(192820)will post record-high quarterly earnings for the third quarter of this year, driven by strong order intake at its Korean and U.S. subsidiaries. The firm analyzed that the growth momentum of domestic skincare products is being bolstered by a recovery in color cosmetics, while the U.S. subsidiary’s profitability is also strengthening. It raised the target price to 400,000 won.

On the 8th, Oh Rin-ah, an analyst at LS SECURITIES, stated, “COSMAX, INC.’s third-quarter earnings are expected to exceed previous forecasts, driven by strong order intake in both Korea and the U.S.”
Revenue for the Korean subsidiary in the third quarter is estimated at 559.9 billion won, a 46% increase year-over-year. This exceeds the company’s previous guidance of 35–40% year-over-year growth.
Analyst Oh explained, “As the growth momentum of major skincare clients accelerates compared to the first half of the year, the proportion of skincare products is expected to rise compared to the second quarter,” adding, “The color cosmetics segment is also expected to return to positive growth, driven by new product launches and expanded promotions from major clients.”
With the trend of improved profitability in gel masks continuing and margins for high-growth items such as essences and mists also improving, the Korean subsidiary is expected to achieve a double-digit operating profit margin.
Overseas subsidiaries are also projected to see steady growth across all regions. Consolidated sales in China are expected to increase by more than 20% year-over-year. The Shanghai subsidiary is forecast to grow by more than 30%, driven by new product launches from a major color cosmetics client and the expansion of offline channels, while the Guangzhou subsidiary is projected to record a growth rate of around 20% due to strong performance in offline and export channels.
The U.S. subsidiary is expected to see revenue growth of over 70% year-over-year. Analysis indicates that while the revenue contribution from indie brand clients significantly exceeds that of existing major clients, reorders for existing products and new product orders are both on the rise.
Researcher Oh stated, “Demand for the development of skincare products—such as toner pads, eye patches, and hydrogel masks—is also expanding,” adding, “We believe growth driven by the expansion of client bases and product categories will continue.” Fueled by this revenue growth, the U.S. subsidiary’s operating profit is projected to increase compared to the second quarter, when it posted its first profit.
The Indonesian and Thai subsidiaries are also expected to post revenue growth rates in the 30% range and the high 20% range, respectively.
The firm projected that strong growth would continue in the fourth quarter, supported by a low base and a robust order backlog. Analyst Oh commented, “We believe the foundation for profit growth is expanding, given the recovery in color cosmetics alongside the growth of the domestic skincare market, as well as the strengthening trend toward profitability in the U.S.”
LS SECURITIES maintained its “Buy” rating on COSMAX, INC. The target price was raised by 14.3% from 350,000 won to 400,000 won. The same target price-to-earnings ratio (PER) of 20 times was applied as before.