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[Alpha Biz=(Chicago) Reporter Kim Jisun] NH Investment & Securities predicted that Cosmax will show solid sales flow due to the popularity of K-beauty and increased exports during the third quarter off-season. The investment opinion 'buy' and the target price 'up' to 180,000 won.
NH Investment & Securities said in a report on the 8th, "We stick to a conservative stance on the recovery of the Chinese cosmetics market, but rapid profitability improvement in the U.S. and high growth in Southeast Asia and Russia are positive points."
on to say, "Considering the continued increase in the export volume of U.S. and indie customers in the U.S. and Southeast Asia and the influx of Chinese group tourists and the revitalization of H&B channels starting from the Mid-Autumn Festival, we will revise the sales growth rate of domestic corporations to 22% and 11%, respectively, and there will be additional performance upsides depending on the intensity of accumulating inventory at shopping festivals in China and the U.S. and attracting new customers."
COSMAX's consolidated sales in the third quarter are expected to rise 13% year-on-year to KRW 449.3 billion and operating profit to KRW 36.8 billion, up 86% from the previous estimate, even though it is off-season.
South Korea's separate standard sales are estimated to rise 21 percent to 250.7 billion won and operating profit to 22.2 billion won, up 90 percent.
Sales in China are estimated to increase 1% year-on-year to 135.4 billion won and net profit to 8.8 billion won, up 19%. US sales are estimated to be down 5% to 43.2 billion won and net deficit of 6.9 billion won. The monthly operating loss is expected to improve significantly due to active attraction of new customers.
Indonesia and Thailand's sales growth rate is estimated at 35% and 9%, respectively.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
