[Click eStock] Cosmax, Turnaround Across All Regions... 'Buy' Maintained

[Asia Economy Reporter Lee Seon-ae] IBK Investment & Securities stated on the 3rd that it maintains a 'Buy' rating and a target price of 140,000 KRW for Cosmax, as the company is expected to increase visibility of external growth and profitability improvement by expanding its global and online customer base beyond domestic and international markets.

The company's 2021 guidance is consolidated sales of 1.5 trillion KRW and consolidated operating profit of 90 billion KRW, and IBK's estimates align with this, projecting sales of 1.5767 trillion KRW and operating profit of 87.1 billion KRW.

Ji-young Ahn, a researcher at IBK Investment & Securities, said, "Cosmax's 4Q 2020 (yoy) consolidated results showed sales of 354.5 billion KRW (+0.4%) and operating profit of 10.5 billion KRW (-37.9% / opm 3.0% -1.8%p), missing consensus, and net profit turned to a loss." She added, "However, with efficiency improvements and client expansion managed across all global subsidiaries, expanding from domestic to global companies, the 2021 consolidated and separate basis turnaround is expected to be more concrete."