[Hot Stock] Cosmecca Korea Rises on Securities Firms' Target Price Upgrades

Kosmecca Korea is on the rise on the 13th, buoyed by expectations for this year's annual performance and favorable reviews from the securities industry.

As of 10:28 a.m. on the day, Kosmecca Korea is trading on the KOSDAQ market at 75,600 won, up 1,800 won (2.44%) from the previous session.

The trading volume is 400,000 shares, with a trading value of 31.7 billion won. The stock price started with a sharp rise to 82,200 won but gave up some of the gains as profit-taking selling poured in.

Hana Securities raised its target price from 95,000 won to 120,000 won, revising upward the sales forecast for Kosmecca Korea this year due to the sensational popularity of 'K-Beauty'.

Hana Securities adjusted the sales forecast for Kosmecca Korea, a cosmetics research and development and manufacturing (ODM) specialist, from 55 billion won to 59.7 billion won, and operating profit from 70.4 billion won to 80.4 billion won.

Researcher Eunjeong Park said, "With the global market share expansion of Korean cosmetics, Kosmecca Korea's domestic operating rate rose from 30% in Q1 to 40% in Q2," adding, "The increase in volume from major clients and product mix improvements have clearly enhanced profitability, and this trend is expected to continue in the second half."

She also said, "In particular, many product lines produced by Kosmecca Korea are ranked among the top bestsellers on Amazon in the U.S.," and "Based on these achievements, proposals for new product production are increasing."

She also expects that the underperforming U.S. and China subsidiaries' Q2 results will improve in the second half of the year.