[Click eStock] "Cosmax Benefits from Tariff Imposition on China"

On the 10th, DB Securities analyzed Cosmax, stating that "short-term performance concerns are excessive" and that the company "will benefit from the US tariffs imposed on China." They maintained their investment rating of 'BUY' and a target price of 200,000 KRW.

DB Securities estimated that Cosmax's consolidated financial statements for the first quarter would show sales of 573.1 billion KRW and operating profit of 47.1 billion KRW, representing increases of 8.8% and 3.6% respectively compared to the same period last year. The operating profit is in line with the market expectation of 49 billion KRW.

The stock price has dropped significantly over the past month due to concerns over weak first-quarter results. The price-to-earnings ratio based on this year's expected net profit has fallen to 13.9 times. Analyst Heo Jena recommended focusing on "reflective benefits from the market's structural perspective and growth potential."

Among Cosmax's overseas clients, there are signs of efforts to shift manufacturing volumes from China to domestic manufacturers in preparation for the US tariffs on China. This could help the growth of Cosmax's domestic or US subsidiaries in the future.

He added, "Concerns about weakness in China and the US in the first quarter have been sufficiently reflected in the stock price," and "as the base lowers in the second half of the year, a smooth recovery is expected."