Cosmax has seen its shares rise over 14% during trading today, following the announcement of record earnings for the second quarter of this year and subsequent upgrades to target stock prices by analysts.
As of 12:39 PM on the Korea Exchange, Cosmax's stock was trading at 241,000 won, up 31,000 won (14.76%) from the previous trading day.
On August 11, Cosmax reported that its consolidated operating profit for the second quarter reached 73.7 billion won, a 21.3% increase compared to the same period last year. Revenue for the same period rose 27.5% to 794.9 billion won, while net profit surged 129.0% to 50 billion won. Both revenue and operating profit marked the highest quarterly figures in the company's history.
For the first half of the year, cumulative revenue totaled 1.4769 trillion won, up 21.8% year-on-year, with operating profit increasing by 13.0% to 126.8 billion won. Growth from key overseas subsidiaries in countries such as China, the United States, and Southeast Asia contributed significantly to these results.
Analysts predict that the growth trend will continue in the second half of the year. NH Investment & Securities raised its target price for Cosmax from 260,000 won to 300,000 won.
Jung Ji-yoon, an analyst at NH Investment & Securities, stated, "Export growth rates remain high in July and August, and the factors that previously pressured margins for standalone subsidiaries are easing. The strong growth of our subsidiaries in China and the United States also supports positive expectations for third-quarter results."
She added, "The valuation merits are also high, and we recommend buying."
Following the upgrades in target prices, several securities firms have adjusted their forecasts. LS Securities set a target price of 350,000 won, while Kyobo Securities set it at 310,000 won. Korea Investment & Securities and Hyundai Motor Securities both set their target prices at 300,000 won, SK Securities at 290,000 won, and Eugene Investment & Shinhan Investment Securities at 280,000 won. Yuanta Securities adjusted its target price to 273,000 won, and Hanwha Investment & Samsung Securities set it at 270,000 won.
* This article has been translated by AI.
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