NH Investment & Securities analyzed on the 27th that C&C International's order volume in January and February increased by more than 50% compared to the previous year, expecting external growth this year.
Jiyoon Jung, a researcher at NH Investment & Securities, stated in the report on the same day, “Looking at the cumulative export amount of Korean color cosmetics last month, the growth rate to Japan increased by 61% compared to the same period last year, showing the continued popularity of Korean cosmetics,” and added, “Stable order increases from domestic Top 2 brands Clio and Rom&nd, whose exports to Japan are increasing, and the improvement of the high-priced product mix of North American clients are gradually enhancing profit quality.”
Researcher Jung explained, “The company's greatest strength is discovering potential customers in advance and catching trends,” and said, “Recently, they secured orders for eyebrow and lip products from the brand ‘Chalotte Tilbury,’ which gained fame on the ‘TikTok’ platform.”
This brand is gaining popularity through the expansion of online and offline distribution channels and the release of various new products. It is judged that expanding domestic and overseas production facilities (CAPA) is necessary for sustainable growth with such potential customers.
Researcher Jung forecasted C&C International's expected performance this year as sales of 167.2 billion KRW and operating profit of 23.1 billion KRW, representing growth of 28% and 33% respectively compared to the previous year. He predicted, “Sales of the Korean corporation will increase by 25% to 148.5 billion KRW compared to the previous year,” and added, “The cumulative order volume in January and February increased by more than 50% compared to the same period last year, and from this year, with the full-scale expansion of the Base product group and the increase in global orders, high growth will continue.”
He also explained, “Sales of the Chinese corporation are estimated at 20.2 billion KRW, a 49% increase compared to the same period last year,” and said, “Although production was unstable last year due to the lockdown in China, the operating rate in January is understood to be over 70% even considering the Lunar New Year holiday.”
He added, “China has a high dependence on a single client, but with the operation of the second factory, it is expected that the client base will gradually diversify.”
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