[Edaily Reporter Shin Ha-yeon ] Despite the seasonal slowdown in the cosmetics industry, strong K-Beauty exports continued, enabling global cosmetics ODM (Original Design Manufacturing) company COSMAX, INC.(192820)to post earnings that exceeded market expectations. Third-quarter revenue reached a record high for any quarter, and operating profit nearly doubled compared to the same period last year. With the stock price rising for three consecutive days following the earnings announcement, securities analysts are projecting that domestic and international growth will continue into next year and are raising their target prices one after another.

According to MP Doctor and others on the 14th, COSMAX, INC. closed at 280,500 won in regular trading the previous day, up 1.26% from the previous trading day. This marked the third consecutive day of gains, following increases of 9.58% on the 11th and 5.32% on the 12th. Compared to the closing price of 240,000 won on the 10th—just before the earnings announcement—the stock is up 18.3%.

The stock price was driven up by third-quarter earnings that exceeded expectations. COSMAX, INC.’s consolidated revenue for the third quarter of this year reached 875.8 billion won, a 49.5% increase from the same period last year, setting a new all-time high on a quarterly basis. Operating profit rose 94.9% to 83.3 billion won, and net profit surged 317.7% to 44.5 billion won. Operating profit also surpassed the market forecast of 80.3 billion won.

◇Domestic Sales Surpass 600 Billion Won for the First Time, Even During the Off-Season

The Korean subsidiary was the primary driver of this growth. Its revenue reached 616.1 billion won, a 61% increase year-over-year, marking the first time quarterly revenue has exceeded 600 billion won. Although the third quarter is typically classified as the off-season for the cosmetics industry due to summer vacations and Chuseok, sales still increased by 19% compared to the previous quarter. As orders for high-margin product categories such as essences and mists rose, domestic operating profit also surged by 97% to 67.7 billion won.

Kwon Woo-jeong, an analyst at KYOBOSECURITIESCO.,LTD., commented, “Despite Chuseok and summer vacations, third-quarter sales in Korea recorded remarkably strong results, rising 19% from the previous quarter,” adding, “It appears that the K-Beauty market has entered a phase of accelerated structural growth compared to the past.”

A virtuous cycle is also continuing, in which the expansion of overseas sales by K-Beauty brands is leading to increased orders for COSMAX, INC., an ODM manufacturer. According to NH INVESTMENT & SECURITIES, HANKOOKCOSMETICS exports rose 57% year-over-year in October and increased by 64% from November 1 to 10, showing a stronger growth trend than in the first half of the year. The rise in both exports by domestic indie brands and direct exports to global cosmetics companies is cited as a key factor driving these results.

Overseas subsidiaries also saw across-the-board growth. In the third quarter, consolidated revenue from the Chinese subsidiary reached 177 billion won, up 27% year-over-year, while the U.S. subsidiary recorded 69.5 billion won, an 88% increase. Revenue from the Indonesian subsidiary rose 34% to 28.8 billion won, and that from the Thai subsidiary increased 7% to 16.2 billion won. This indicates that overseas operations—which had previously contributed less to overall performance compared to domestic operations—are now showing signs of growth.

◇Moving Ahead with Capacity Expansion… Brokerages Raise Target Prices One After Another

The company is also continuing to expand production capacity to meet growing demand. According to HYUNDAI MOTOR SECURITIES, COSMAX, INC.’s domestic production capacity is currently operating at virtually full capacity, and the company plans to expand its production capacity by approximately 10% in the fourth quarter of this year. It is also considering further capacity expansion next year. In Thailand, a new factory is scheduled to begin operations this coming December.

Following the earnings announcement, securities firms have also raised their target prices for COSMAX, INC. one after another. NH INVESTMENT & SECURITIES raised its target price from 370,000 won to 385,000 won, while Shinhan Investment Securities raised its target from 350,000 won to 410,000 won. Hana Securities raised its target from 380,000 won to 420,000 won, and Meritz Securities raised its target from 360,000 won to 390,000 won. HYUNDAI MOTOR SECURITIES also raised its target price on the 13th from 380,000 won to 390,000 won.

Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated, “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.” NH INVESTMENT & SECURITIES forecasts that COSMAX, INC. will record revenue of over 900 billion won in every quarter next year.

The key question for next year is whether domestic growth will be complemented by improved performance from overseas subsidiaries. HYUNDAI MOTOR SECURITIES projected that COSMAX, INC.’s consolidated revenue for next year will reach 3.8801 trillion won, a 19.4% year-over-year increase, while operating profit will rise 23.6% to 352.9 billion won. In particular, it expects revenue from the U.S. subsidiary to increase by 28.1%.

Ha Hee-ji, an analyst at HYUNDAI MOTOR SECURITIES, stated, “We expect earnings to accelerate as production capacity expands amid robust order growth both domestically and internationally.” She added, “Considering the increased profit contribution from the U.S. subsidiary and the effects of domestic capacity expansion, there is a valid possibility that earnings estimates for 2027 could be raised further.”