Hana Securities forecasts Cosmax to turn profitable on U.S. earnings improvement, sets target price at 230,000 won

Hana Securities predicts Cosmax will achieve profitability, driven by the turnaround of its U.S. subsidiary and an anticipated improvement in overall profitability in the second half of the year. The firm reiterated its 'BUY' recommendation for the cosmetics ingredient manufacturer, setting a target price of 230,000 won, significantly higher than its previous closing price of 168,300 won.

The key driver for this optimistic outlook is the projected profitability of Cosmax's U.S. operations. Hana Securities analyst Park Jong-dae highlighted that the increasing sales volume of the U.S. subsidiary is expected to lead to a positive financial turnaround. This marks a significant development for the company, as the U.S. market is a crucial area for its global expansion strategy.

Park anticipates that the second quarter will serve as a turning point, with profitability gains becoming more pronounced in the latter half of the year. This suggests that Cosmax has been navigating challenges in its U.S. business, and the current strategic adjustments are expected to yield positive results. The firm's analysis implies that the company's efforts to optimize its U.S. operations are beginning to pay off, paving the way for sustained growth.

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The U.S. subsidiary's sales volume is increasing, and a turnaround to profitability is expected, which is encouraging.