[Click eStock] Daishin Securities Forecasts "Cosmax Q1 Operating Profit Up 44%"... Target Price Raised

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 19th that it has maintained a buy rating on Cosmax while raising its earnings estimates for this year and next year, and has raised the target price to 170,000 KRW.

Cosmax's consolidated sales for the first quarter of this year are expected to increase by 7% year-on-year to 350.5 billion KRW, and operating profit is projected to rise 44% to 23.2 billion KRW. On a domestic standalone basis, sales are estimated to decrease by 7% due to the base effect from last year's hygiene product performance, but excluding this, sales are expected to be at last year's level.

Sales in China are expected to increase by 42% year-on-year, leading to a first-quarter earnings surprise. In China, the market atmosphere is improving as mid-to-low priced emerging brands strengthen their positions due to the increased penetration of major e-commerce platforms. This is accompanied by expanded contributions from new clients and increased order volumes from existing clients, resulting in significant improvements in both scale and profitability.

Han Yoo-jung, a researcher at Daishin Securities, said, "Sales in the U.S. are expected to decrease by 7% year-on-year, slightly widening the operating loss," adding, "The declining trend is expected to continue until the second quarter, with a rebound anticipated in the second half."