[Click e-Stock] "Cosmecca Korea Growing with K-Beauty"

On May 26, Research Alarm analyzed that Cosmecca Korea is growing alongside the K-beauty boom. The firm newly suggested a target price of 80,000 won.

This year, Cosmecca Korea is estimated to achieve sales of 582 billion won and operating profit of 69.2 billion won. These figures represent increases of 11.0% and 14.6%, respectively, compared to last year.

Lee Seunghwan, a researcher at Research Alarm, stated, "From the second quarter of this year, we expect an increase in sales of the main product group of our key client, which has recently changed." He added, "Sales are also expected to grow through the acquisition of new clients, especially those focused on cleansing oils, where the company already has a competitive advantage." He further noted, "With the operation of the hydrogel production line in Cheongju, additional new revenue sources are also anticipated."

Lee analyzed, "Cosmecca Korea's total production capacity (CAPA) stands at 940 million units per year, narrowing the gap with large-scale original design manufacturing (ODM) companies." He continued, "Large companies are currently operating at a utilization rate of over 80%, making it difficult for them to handle the rapidly increasing volume of orders."

He explained, "As of the first quarter of this year, the utilization rates by corporation for Cosmecca Korea are only 40% in Korea, 35% in the United States, and 27% in China." He added, "Since the company has sufficient production capacity, the likelihood of additional facility investment over the next two to three years is low."