Cosmax is experiencing a strong start to trading as expectations grow for its U.S. subsidiary to turn a profit and improve profitability in the second half of the year.
According to the Korea Exchange, as of 10:02 a.m. on July 6, Cosmax shares rose 7.07% (11,900 won) to 180,200 won compared to the previous trading day.
The increase in stock price is attributed to positive forecasts from analysts focusing on the performance improvement of the U.S. subsidiary.
Hana Securities estimates that Cosmax's consolidated revenue for the second quarter of this year will reach 744 billion won, with an operating profit of 69.6 billion won. This represents a year-on-year increase of 19% and 14%, respectively.
The firm also anticipates continued growth for both domestic and overseas subsidiaries. Domestic sales are expected to rise by 15% compared to the same period last year, while revenues from the subsidiaries in China and the U.S. are projected to increase by 21% and 50%, respectively. Additionally, subsidiaries in Indonesia and Thailand are expected to grow by 30% and 10%, contributing to overall performance improvement.
Park Jong-dae, a researcher at Hana Securities, stated, "It is encouraging that the U.S. subsidiary is expected to turn a profit as its revenue expands. We anticipate a significant improvement in profitability in the second half of the year, starting from the second quarter." He added, "With the normalization of operations in the U.S. and Southeast Asia, and the downturn in the color cosmetics category having bottomed out, domestic sales of hydrogel masks are expanding, leading to improvements in product mix and profitability."
* This article has been translated by AI.
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