[Edaily Reporter Kwon Oh Seok ] Hana Securities announced on the 9th that it is maintaining its “Buy” rating on COSMECCA KOREA CO.,LTD.(241710)and raising its target price from 147,000 won to 155,000 won.

Park Jong-dae, an analyst at Hana Securities, said, “The third quarter highlighted the company’s strong commitment to revenue growth. The domestic business posted robust year-over-year growth of 55%, despite a high base from the previous year. Orders increased significantly not only from major clients but also from small and medium-sized indie brands,” he said. “Although the number of operating days was reduced due to the Chuseok holiday and summer vacations, the company managed to handle the entire order volume by increasing overtime and outsourcing. The company focused on meeting client delivery deadlines and securing new customers rather than profitability.”
Previously, third-quarter consolidated revenue reached 247.5 billion won (up 36% year-over-year), and operating profit stood at 27.2 billion won (up 0.1%). Although this fell short of market expectations of 30 billion won, the results were still strong. Domestic business revenue exceeded 200 billion won for the first time in a quarter, driving the improvement in performance. He noted, “We can see the management’s determination to use this period of ODM dominance as a springboard for solid market share expansion. In fact, compared to the third quarter of 2021—five years ago—COSMECCA KOREA CO.,LTD.’s revenue has quadrupled, with an average annual growth rate of 32%. This significantly outpaces the growth of COSMAX, INC. and Han
Korea Kolmar over the same period,” he emphasized, adding, “Although there is still more than a twofold difference in revenue scale, the gap is narrowing due to our rapid growth rate.”
The container shortage issue was resolved in the first half of the year. Consequently, domestic business revenue in the fourth quarter is expected to be similar to that of the third quarter. Analyst Park explained, “In the third quarter, despite record-breaking revenue that far exceeded expectations (175.7 billion won), there was a significant amount of inefficient outsourcing to meet delivery deadlines due to production bottlenecks; however, operational efficiency has improved in the fourth quarter. We also expect that excess incentive payments will not be as significant as in the third quarter,” he explained.
He added, “In the medium to long term, once the Ochang plant is completed, we can reduce our reliance on outsourcing. As automation systems—utilizing unmanned production lines, automatic weighing, and inspection robots—become established, we expect nighttime production to increase while quality control capabilities also improve,” elaborating that “this means we can enhance both growth and profitability simultaneously.” The Ochang plant is scheduled to begin trial operations in the second half of 2027, with the goal of reaching full capacity in 2028.