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(Photo=Cosmax) |
[Alpha Biz= Reporter Kim Minyoung] Korea Investment & Securities raised its target stock price to 250,000 won on the 8th, saying that the global popularity of Korean cosmetics is growing faster than expected. It also maintained its investment opinion 'buy'.
Korea Investment & Securities said, "The company's consolidated sales and operating profit in the second quarter were 577 billion won and 58 billion won, so both sales and operating profit are expected to meet market expectations." The figures are up 20.4 percent and 25.9 percent, respectively, from a year earlier.
"The rising global popularity of Korean cosmetics will allow the Korean corporation to continue its good sales flow and offset China's slump," said Korea Investment & Securities Co. "We expect the U.S. to record similar sales year-on-year and Southeast Asian corporations to show a good sales trend following the first quarter."
It is regrettable that the Chinese cosmetics industry's recovery in the second quarter was slower than expected. "This is due to China's slow economic recovery and the increase in Chinese people's overseas travel," researcher Kim said. "Last month's 618 shopping event was very sluggish." "Like other cosmetics brands, it is regrettable that Cosmax has a weaker-than-expected business in China, but the growing popularity of Korean cosmetics globally makes up for this," he explained.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
