[Market Focus] Cheongdam Global Jumps 13% on Strong China Cosmetics Outlook

Cheongdam Global is showing strong performance in early trading.

As of 9:06 a.m. on July 16, Cheongdam Global was trading at 8,140 won, up 13.85% (990 won) from the previous day.

Investor sentiment appears to have been boosted by securities analysts' expectations that Cheongdam Global, a cosmetics distribution specialist, will see a significant rebound in operating profit margin (OPM) this year (from 2.9% in 2024 to an expected 8.4% in 2025).

Lee Haeni, a researcher at Eugene Investment & Securities, stated, "The combined performance of subsidiaries such as Bio Bijou, Byshuko, Idol Store, and Creasiv is now showing a clear improvement." She projected annual sales growth of 77% and operating profit growth of 130%. This year's annual sales are estimated at 241.6 billion won, with operating profit expected to reach 20.3 billion won.

Since last year, Cheongdam Global has been supporting the new commerce expansion of its own brands and brands in which it has invested equity. Lee further commented, "Our star brands, such as VELYVELY, DAERA, and INFODPLUS, may be somewhat unfamiliar, but they continue to resonate with Chinese consumers seeking unique concepts and brands." She added, "Since popular Korean cosmetics brands have not yet actively entered the Chinese market following the Hanhanryeong, these brands are expected to meet the demand among Chinese consumers for indie cosmetics for the time being."