1. Cosmax Q2 2025 Earnings Analysis: Positive Signals Amidst the Slump?
Cosmax recorded consolidated revenue of KRW 1.2121 trillion (a 44.1% decrease YoY), operating profit of KRW 112.1 billion (a 36.1% decrease YoY), and net income of KRW 32.4 billion (a 63.4% decrease YoY) in the first half of 2025. The global economic slowdown and contraction of the cosmetics market are identified as the main causes. However, efficient cost management and performance of global business sites are positive factors. Notably, growth in overseas businesses, including China, Indonesia, and Thailand, along with continuous R&D investment, suggests future growth potential.
2. Key Points to Watch at the IR: What Will Investors Focus On?
Investors are expected to focus on whether Cosmax can reverse the declining sales trend, maintain sustainable profitability improvement, and secure financial soundness. Addressing concerns regarding high debt ratios and convertible bond put options will be crucial tasks for the company.
3. Stock Price Outlook and Investment Strategies Post-IR
If Cosmax presents positive future growth strategies and plans to secure financial soundness at the IR, it could gain upward momentum in its stock price. Conversely, if the announcements fall short of market expectations, downward pressure on the stock price may increase. Investors should thoroughly analyze the IR content and make investment decisions from a long-term perspective.
- Key Investment Points:
- – Mitigation of sales decline and improvement trend in operating profit margin
- – Concreteness and feasibility of growth strategies
- – Measures to manage debt ratio and convertible bond put option risk
- – Status of R&D investment and new technology development