[Click eStock] "CNC International, Flood of Orders... Unrivaled Growth Momentum"

DS Investment & Securities analyzed on the 17th that C&C International is showing an outstanding growth trend with order flows exceeding expectations.

Jo Dae-hyung, a researcher at DS Investment & Securities, stated in a report on the same day, “The order volume, which was around 7 million units per month in the second half of last year, is estimated to have increased to 10 million units in the first quarter of this year,” adding, “The increase in orders from major domestic clients was an expected step, and orders from Chinese and North American clients significantly increased compared to the previous year, driving external growth.”

Researcher Jo also mentioned, “The volume produced at the Shanghai Plant 2, which started operation last month, is responding to increased orders from Chinese local brands such as INTOYOU,” and “The order volume is estimated to have more than doubled compared to the previous year.”

Additionally, Jo noted, “The sales to North America, led by TARTE and Rare Beauty, are also noteworthy,” stating, “The proportion of North American clients, which was around 24% last year, is estimated to have expanded to 30% in the first quarter of this year. Orders mainly consist of lip balm, lip tint, and blusher product lines, with the proportions of lip products and other product lines judged to have expanded to 65% and 20%, respectively.”

He added, “If lip tint products fully bloom in the North American market, it is a structure that can also expect an expansion of products applying the company’s formulation within prestige brands.”

Furthermore, he analyzed, “Considering the record-breaking quarterly performance trends amid the flood of orders, the current stock price is judged to be in an undervalued range,” and “From the stage where the fixed cost leverage effect appears after expansion, profit margins are also expected to improve, indicating additional valuation attractiveness.”