April 17, 2024

• 

[THE INVESTOR] Cosmecca Korea’s supply to the Chinese and American region is expanding and will boost its earnings this year, said KTB Investment and Securities on Feb. 21.

The growth momentum in these regions is the fastest among the three South Korean cosmetics’ original design manufacturers, including Kolmar Korea and Cosmax, said analyst Kim Yeong-ok.

The company’s operating profit and net profit missed the market estimate last year largely due to the mass recruitment of personnel in the latter half, and the fact that the revenue from China and the US beat the estimates is a positive, said the analyst. 

Cosmecca‘s 2016 sales in China more than doubled on-year to 22.3 billion won (US$19.47 million), as its number of clients has been increasing since the second half of 2014, and in the US, orders from international clients are surging, adding momentum to the upturn, noted Kim. 

The analyst maintained a “strong buy” recommendation and a 98,000 won target price. Kim also estimated that its revenue this year will spike 46 percent on-year to 240.6 billion won and operating profit 59 percent to 20 billion won. 

By Hwang You-mee (glamazon@heraldcorp.com)