April 19, 2024

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[THE INVESTOR] Cosmax will advance significantly as it gains a foothold in the US and China, said Shinhan Investment on April 24, maintaining a “buy” recommendation and raising the target price to 170,000 won (US$157.80) from 140,000 won.

Its revenue in the first quarter will increase 22.1 percent on-year to 267.5 billion won and operating profit by 7 percent to 10.1 billion won, slightly missing market consensus, said analyst Lee Ji-yong.

Domestic revenue will decline 5 percent, continuing the downward trend for three consecutive quarters, but that of the whole company will hike over 20 percent, said the analyst. 

Its domestic revenue will rise from the second quarter, and its total annual revenue will jump 33.9 percent to 1.2 trillion won. Its operating profit will surge 82.6 percent to 64.2 billion won, estimated Lee. 

On the back of expanded manufacturing capacity and rise in orders, revenue from China will increase 30.7 percent on-year to 485.2 billion won. Revenue from the US will soar 378.6 percent to 182.2 billion won reflecting that of recently acquired Nu World, according to the analyst. 

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