Hana Securities estimated on the 14th that COSMAX, a manufacturer development production (ODM) corporation, will achieve its highest quarterly performance in history in the second quarter of this year (April to June). It maintained a buy rating and a target price of 300,000 won. COSMAX's closing price on the previous trading day was 244,500 won.

COSMAX logo. /Courtesy of COSMAX

Hana Securities projected that COSMAX recorded consolidated revenue of 650 billion won and operating profit of 62.9 billion won in the second quarter this year. This marks increases of 18% and 35%, respectively, compared to the same period last year. The operating profit margin stands at 10%, the highest quarterly performance to date.

Park Eun-jung, a researcher at Hana Securities, noted, "Despite the high base, the domestic corporation, which is breaking its maximum performance, and the Southeast Asian corporation, which continues to see solid growth, are driving the improvement in performance," adding, "The Chinese corporation's profitability and order environment are also gradually recovering."

The domestic corporation is leading strong growth as the proportion of mask packs is rapidly expanding amid a steady flow of basic and forward orders. The Southeast Asian corporation is expected to see a 31% revenue growth rate in the second quarter, with an increasing trend in orders alongside the growth of indie brands in the industry.

Researcher Park forecasted that COSMAX will record its highest annual performance as well. The estimated performance is projected to be an annual revenue of 2.5 trillion won and operating profit of 240 billion won.

Researcher Park stated, "With the comprehensive expansion of K-beauty exports and the growth of indie brands, orders are concentrating on large ODM companies," adding that "the company's proactive expansion of production capacity will lead to domestic growth that exceeds the K-beauty export growth rate."

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