[Click eStock] C&C International, Quarterly Record Sales

Hana Securities announced on the 12th that it maintains a Buy rating and a target price of 65,000 KRW for C&C International.

C&C International recently fell by 14%. Hana Securities attributed this to profit-taking amid concerns that the company's strong performance since 2022 might act as a base effect. They viewed that there has been no change in the company's fundamentals. Rather, the recent cosmetics market is a sharply divided market where brands either lead trends or become obsolete, making it more important which brands consumers are currently willing to purchase.

Park Eun-jung, a researcher at Hana Securities, stated, "C&C International is expanding its scale as orders increase from trend-leading brands in domestic, North American, and Chinese markets, creating a virtuous cycle where the domestic and international customer base is further expanding," adding, "We expect the company to record its highest quarterly performance each quarter due to 'domestic and international customer expansion + CAPA expansion effect + reopening effect.'"

C&C International's 2023 performance is projected at consolidated sales of 210 billion KRW (+62%) and operating profit of 34.7 billion KRW (+99%). Researcher Park noted, "An increase in orders from customers throughout the year, with additional new orders from global customers in the second half, is expected to drive stepwise growth," and added, "New factories in Korea and China will begin full-scale operations in the second half, handling the rapidly increasing order volume."

C&C International's second-quarter results are expected to show consolidated sales of 53.6 billion KRW (+75%) and operating profit of 9.4 billion KRW (+180%, operating margin 18%), generally meeting the recently raised consensus. It is also expected to set a new quarterly sales record, surpassing 50 billion KRW in quarterly sales for the first time. Researcher Park said, "The company's product development capabilities, which lead trends, are receiving attention both domestically and internationally, resulting in a virtuous cycle of customer expansion → increased consumer demand → increased order volume."