[Click eStock] "Undervalued Appeal Highlighted... Cosmax, Target Price Up"

Mirae Asset Securities stated on the 23rd that "Cosmax is the number one Original Design Manufacturer (ODM) in the cosmetics industry, but it is trading at a valuation (stock price relative to corporate value) lower than the industry average," and raised the target price from the previous 200,000 KRW to 210,000 KRW. The buy rating was also maintained.

On the same day, researcher Baek from Mirae Asset Securities said, "Despite the stock price increase, the current price-to-earnings ratio based on 12-month forward earnings (12MF PER) is 16 times, which is still lower than the industry average. The undervaluation appeal is highlighted."

Cosmax's consolidated sales in the first quarter of this year increased by 31% compared to the same period last year, and all business regions showed significant growth, improving the operating profit margin by 5 percentage points. Sales for this year are expected to maintain a high growth trend, increasing by 23% compared to the previous year.

Researcher Baek said, "Both direct and indirect exports have expanded domestically, and sales to local indie brands in China are being reflected in the results. In the U.S., operating losses based on operating performance have been significantly reduced thanks to sales growth to local indie brands," adding, "The growth rate is larger than expected."

He also added, "Although uncomfortable cost issues such as bad debt write-offs and financial expenses still exist, the operating leverage effect stemming from strong top-line growth overwhelmingly offsets these," and "As long as sales growth is supported, a trend of margin improvement seems possible."