[Featured Stock] Stable Growth Outlook... Cosmax Up Over 6%

Cosmax is showing early strength as it is expected to achieve stable growth and improved profitability in both domestic and international markets this year.

As of 9:46 AM on the 6th, Cosmax is trading at 182,700 KRW, up 11,400 KRW (6.65%) from the previous trading day.

Investor sentiment appears to have surged following securities firms raising their target prices amid expectations of increased overseas sales centered on China and Southeast Asia.

In recent times, six securities firms have raised their target prices for Cosmax. Yuanta Securities raised its target from 185,000 KRW to 220,000 KRW, while Hana Securities and Kyobo Securities each increased theirs from 200,000 KRW to 220,000 KRW. Daishin Securities and Hyundai Motor Securities raised their targets from 180,000 KRW to 210,000 KRW. Mirae Asset Securities increased its target from 170,000 KRW to 200,000 KRW.

Previously, Cosmax recorded its highest-ever quarterly results in Q4 last year, with sales and operating profit reaching 558 billion KRW and 39.8 billion KRW, respectively. The previously sluggish Chinese market successfully turned profitable after two quarters.

Baesong, a researcher at Mirae Asset Securities, stated, “We believe the underperforming Chinese market results have passed their bottom. The operating rate of the Shanghai factory is increasing, and sales in the Guangzhou market have also grown significantly, leading us to raise our overall performance outlook for Cosmax this year.”