[Featured Stock] Cosmax Posts Q1 Earnings Shock... Plummets Over 10%

[Asia Economy Reporter Ji Yeon-jin] Cosmax's stock price is plummeting on the 17th following the announcement of disappointing first-quarter earnings during trading hours.

As of 10:09 a.m. on the same day, Cosmax was trading at 64,500 KRW on the Korea Exchange, down 11.03% (8,000 KRW) from the previous trading day. The company hit a new 52-week low during the session, trading at 63,100 KRW.

Cosmax announced the day before that its operating profit for the first quarter of this year was 13.7 billion KRW, a 41% decrease compared to the same period last year.

In response to Cosmax's poor earnings, securities firms have adjusted their investment ratings and target prices.

Daol Investment & Securities and Meritz Securities downgraded Cosmax's investment rating from 'Buy' to 'Hold' and lowered their target prices from 110,000 KRW and 100,000 KRW respectively to 70,000 KRW.

Daol Investment & Securities analyst Daesong said, "While momentum in domestic and Chinese earnings had been maintained, domestic cost burdens and lockdown measures in China make uncertainty unavoidable in these regions for the time being."

Hanuri, an analyst at Meritz Securities, added, "There is also ongoing concern about supply-demand outflows due to the expected listing of the Chinese subsidiary in the fourth quarter. Considering the earnings slump and weakening momentum, a conservative approach is recommended."

Additionally, Cape Investment & Securities (160,000 KRW → 100,000 KRW), Ebest Investment & Securities (160,000 KRW → 100,000 KRW), Kiwoom Securities (120,000 KRW → 110,000 KRW), and IBK Investment & Securities (180,000 KRW → 130,000 KRW) also lowered their target prices for Cosmax.