[Featured Stock] Cosmax Jumps 6% on Expectations of Earnings Improvement

Cosmax rose more than 6% on expectations of improved earnings this year.

As of 9:34 a.m. on the 24th, Cosmax was trading at 196,700 won, up 3.58% from the previous trading day.

At one point in the morning, it was trading at 202,500 won, up 6.64%.

Samsung Securities commented that although Cosmax's earnings in the fourth quarter of last year were somewhat disappointing, signs of improvement are being detected, including a recovery in orders from client companies.

Lee Gayoung, an analyst at Samsung Securities, said, "In the fourth quarter of last year, Cosmax's revenue and operating profit grew 8% and 3% year-on-year, respectively, reaching 601.0 billion won and 40.9 billion won," adding, "After excluding one-off gains, operating profit would have been 34.8 billion won, which is similar to our estimate, and would have represented a 13% year-on-year decline."

Lee analyzed, "It was a quarter in which the performance of the Korean subsidiary was somewhat disappointing," adding, "Revenue grew only 3.9%, and the operating margin, after excluding one-off factors, would have remained at around 8.3%."

However, Lee added, "It is fortunate that orders from client companies have been recovering in the first quarter of this year," and said, "For the Korean subsidiary, we are seeing large-volume orders from high-quality clients, and a gradual recovery is expected in Southeast Asia."