[Click eStock] "CNC International, Continuing Growth in 2023"

Kiwoom Securities forecasted on the 7th that C&C International will continue its growth trend this year.

C&C International is a specialized OEM company for color cosmetics. Last year, it recorded total sales of 130.6 billion KRW and an operating profit of 17.5 billion KRW, representing increases of 43% and 675% respectively compared to the same period the previous year. Orders from major clients increased due to the global reopening and the lifting of mask mandates, and all product lines showed strong sales performance.

Sojeong Cho, a researcher at Kiwoom Securities, stated, “This year, C&C International is expected to achieve sales of 164.6 billion KRW and an operating profit of 22.2 billion KRW, marking increases of 26% and 27% respectively compared to last year,” adding, “While demand for existing products is expected to remain solid, new orders will increase due to the launch of new products.”

Researcher Cho continued, “Notable regions include North America and China, where the Chinese cosmetics market is expected to rebound significantly this year due to the reopening,” and “Approximately 10% of sales to China come from global clients, with the remainder from local clients. We expect orders from local clients to increase ahead of the recovery in the cosmetics market demand, and sales to global clients will also grow substantially.”

Additionally, Cho added, “The official launch of the prestige brand under the L Group, a major client, in the Chinese market is scheduled, and an improvement in product mix is expected due to increased shipments of high-margin products.”

In the North American region, interest in C&C International’s main product line, lip tint, is increasing. He analyzed, “Product planning and development with local clients are in the final stages, and new product orders are expected to begin in earnest this year,” and “Demand for existing products is also expected to continue steadily, so the performance momentum toward North America is expected to remain solid this year as well.”