Cosmax's stock has risen more than 5% after reporting second-quarter results that exceeded market expectations.
According to the Korea Exchange, as of 1:21 PM, Cosmax shares were trading at 258,500 won, up 12,500 won (5.08%) from the previous trading day. The stock opened at 242,500 won and reached a high of 263,000 won during the session.
The increase in stock price is attributed to strong second-quarter results that surpassed consensus estimates.
According to the Financial Supervisory Service's electronic disclosure system, Cosmax reported consolidated sales of 794.9 billion won and an operating profit of 73.7 billion won for the second quarter. Both sales and operating profit increased by 28% and 21%, respectively, compared to the same period last year, with operating profit exceeding the market consensus of 69.6 billion won.
Park Jong-dae, a researcher at Hana Securities, noted, "Sales from the domestic headquarters grew by 23% year-on-year, while sales from subsidiaries in China and the United States increased by 33% and 79%, respectively, driving the improvement in performance. The Southeast Asian subsidiary has also begun to turn around. Notably, the domestic headquarters surpassed 500 billion won in sales for the first time in a quarter, and the improvement in profitability is encouraging."
He added, "The operating leverage in the basic category is becoming more pronounced, and while gel masks were a factor in last year's decline in profitability, this year, the iPatch line has seen explosive growth, contributing to improved profitability."
Park also projected an increase in operating profit for the second half of the year, stating, "Due to last year's base effect, high growth rates in the domestic market, and a clear turnaround in overseas subsidiaries, operating profit in the second half is expected to increase by up to 70% compared to the same period last year. The company has provided guidance for third-quarter sales, projecting a year-on-year increase of 35-40% in Korea, 20% in China, 40% in the United States, and 30% in both Indonesia and Thailand."
* This article has been translated by AI.
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