April 25, 2024

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[THE INVESTOR] Cosmax’s profits will normalize in earnest boosted by its recovering revenue, said NH Investment and Securities on June 1, raising the target price to 200,000 won (US$1845.94) from 185,000 won.

Its average annual growth rate in the coming three years will be as high as 54 percent, overwhelmingly higher than its peers. Its profits sharply declined last year, but will fully return to normal. Next year, it will dramatically rise, as it grows significantly in China while losses in the US shrink, forecast analyst Han Guk-heui. 

Revenue in the second quarter will hike 31.5 percent on-year to 305.4 billion won and operating profit by 26.3 percent to 18.1 billion won. Operating profit in latter half will surge 201 percent from the same period last year. Demand in domestic cosmetics industry will regain more visibly from the second quarter and its operating in the US will be able to turn to black next year, said the analyst maintaining a “buy” recommendation. 

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