[Edaily Reporter Shin Ha-yeon ] On the 12th, NH INVESTMENT & SECURITIES projected that COSMAX, INC.(192820)would continue its earnings growth momentum, driven by strong K-Beauty exports and improved profitability at its overseas subsidiaries. The firm noted that quarterly revenue is expected to exceed 900 billion won starting next year, with both quantitative and qualitative growth occurring simultaneously in its domestic and international operations. It maintained its “Buy” rating and raised the target price from 370,000 won to 385,000 won.

Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated in a report released today, “We have revised our 2027 earnings per share (EPS) estimate upward by 8% due to standalone revenue growth exceeding market expectations and simultaneous improvements in the profitability of overseas subsidiaries,” adding, “This represents clear quantitative and qualitative growth.”

COSMAX, INC.’s third-quarter consolidated revenue reached 875.8 billion won, a 50% increase year-over-year. Operating profit rose 95% to 83.3 billion won, exceeding market expectations by 7%. Both revenue and operating profit marked record-high quarterly figures.

The domestic business drove this earnings growth. Revenue for the Korean subsidiary reached 616.1 billion won, a 61% increase year-over-year, while operating profit rose 97% to 67.7 billion won. The operating profit margin improved by 2 percentage points to 11.0%.

In addition to an increase in orders driven by the expansion of K-Beauty exports, improvements in product mix also contributed to enhanced profitability. The operating profit margin for gel masks stabilized at a mid-single-digit level, and sales of color cosmetics brands also turned to growth, rising 10% year-over-year. Production efficiency for high-margin skincare products, such as essences and mists, also improved.

Growth in the domestic business is expected to continue in the fourth quarter. HANKOOKCOSMETICS exports rose 57% year-over-year in October and 64% from November 1–10, showing a stronger growth trend than in the first half of the year. NH INVESTMENT & SECURITIES projected that, given the robust order intake in the third quarter, the South Korean subsidiary’s fourth-quarter revenue would significantly exceed previous estimates.

Overseas subsidiaries also showed balanced growth. Sales in China reached 177 billion won, a 26% increase year-over-year. The Shanghai subsidiary saw sales rise by 39% due to increased sales from a major color cosmetics client and the launch of new skincare products, while the Guangzhou subsidiary also grew by 11%, driven by exports and growth in offline channels.

In particular, the fact that local Chinese cosmetics brands are expanding their exports to Southeast Asia is a positive sign. Analyst Jeong stated, “In China, many C-Beauty companies are expanding their exports to Southeast Asia,” adding, “We expect to secure orders by riding the wave of export growth from local clients.”

Growth in the U.S. business was also notable. Third-quarter revenue for the U.S. subsidiary reached 69.5 billion won, an 88% increase year-over-year. With a surge in repeat orders from local indie brand clients and new product orders, operating profit is estimated at approximately 4.9 billion won, with an operating profit margin of 7%.

Analyst Jeong explained, “There is a growing trend of requests from local U.S. clients for the development of K-Beauty formulations and skincare products,” adding, “The profit structure is expected to continue improving as U.S. sales volume expands quarter by quarter.”

NH INVESTMENT & SECURITIES projected COSMAX, INC.’s consolidated revenue for this year at 3.222 trillion won and operating profit at 286.2 billion won. These figures represent year-over-year increases of 34.3% and 46.2%, respectively. For next year, revenue is expected to reach 3.7975 trillion won and operating profit 356 billion won, up 17.9% and 24.4%, respectively.

The quarterly revenue forecasts for next year are 912.5 billion won in the first quarter, 943.0 billion won in the second quarter, 970.3 billion won in the third quarter, and 971.7 billion won in the fourth quarter—all exceeding 900 billion won. The upward revision of the target price reflects improved earnings estimates for next year.

Analyst Jeong emphasized, “Stand-alone revenue growth is exceeding market expectations, and the profitability of overseas subsidiaries is improving in tandem,” adding, “We recommend a ‘Buy’ rating.”