DAOL Investment & Securities raised its target price for COSMAX on the 18th, noting that the completion of localization is expected to boost sales for its Southeast Asian subsidiary. The investment opinion remains "Buy," and the target price has been increased from 240,000 won to 310,000 won. COSMAX's previous trading day's closing price was 263,000 won.
Park Jong-hyun, a researcher at DAOL Investment & Securities, said, "We are reducing costs through raw material subsidiaries and localization, and are strengthening collaboration with local brands based on our own prescriptions formulated by the Korean subsidiary."
COSMAX has established factories in four overseas countries, including the United States, China, Indonesia, and Thailand. According to Park's explanation, smooth raw material supply is crucial for overseas expansion.
Park noted, "COSMAX ensures stable raw material supply to its overseas subsidiaries through its two raw material subsidiaries, COSMAX Neo and CM Tech, while also progressing with localization," adding, "In the first quarter of this year, the combined sales of the three raw material companies amounted to 46.8 billion won, marking a 51% growth compared to the same period last year, and they are emerging as key subsidiaries in the LOCO project."
COSMAX plans to expand its reach in the Indonesian region while also entering the South Asian market. It aims to pursue the development of manufacturing brands (OBM) and online distribution, as well as health functional food businesses.
Park mentioned, "As the LOCO project progresses, COSMAX’s global expansion is expected to continue," and noted, "With an upward revision of this year’s performance estimates, we have raised the appropriate stock price to 310,000 won."