[Market Focus] Cosmecca Korea Surges 8.85% on Strong Q3 Earnings

The stock price of Cosmecca Korea, a domestic cosmetics Original Development Manufacturing (ODM) company, is showing strong performance following its third-quarter earnings announcement.

As of 9:22 a.m. on November 7, Cosmecca Korea was trading at 73,800 won, up 6,000 won (8.85%) from the previous trading day.

The previous day, Cosmecca Korea announced that its consolidated operating profit for the third quarter reached 27.2 billion won, a sharp increase of 78.8% compared to the same period last year. During the same period, sales rose by 44% to 182.4 billion won, and net profit jumped 161.1% to 22.3 billion won. All three figures represent the highest quarterly results in the company's history. The cumulative operating profit for the first three quarters of this year reached 62.5 billion won, already surpassing last year's annual operating profit of 60.4 billion won.

In particular, the company's proprietary formulations-its cleansing oil and Fill Shot products-became bestsellers on Amazon and TikTok platforms, respectively, driving performance growth.

Kyobo Securities stated on this day that the bulk order for the 'Fill Shot' product is the key factor behind Cosmecca Korea's earnings growth, maintaining its 'Buy' investment rating and raising its target price from 80,000 won to 100,000 won.

Researcher Kwon Woojeong commented, "The target price was calculated by applying a price-to-earnings ratio (PER) of 15 times to next year's earnings per share (EPS). Cosmecca Korea is seeing an increase in the number of customers placing bulk orders, as well as expanding order volumes from existing clients. Additionally, the growth in sales from indie brands in the U.S. market is a positive factor."