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Biz News Korea(Eng)
Cosmax shares gain ground with strong operations in China
- Collected
- 2017.10.16
- Distributed
- 2017.10.17
- Source
- Go Direct
Cosmax remained in the black thanks to its good performance in the world’s largest cosmetics market unlike other Korean cosmetics companies that have been hit hard due to Beijing’s continuous retaliatory measures against Korean brands in protest to Seoul’s deployment of the U.S. anti-missile shield.
According to the Korea Exchange on Sunday, Cosmax’s stock price climbed 23.9 percent for the past three months. Its stock value was up 30.9 percent to 133,500 won ($118) on October 13 from 102,000 won on July 24.
The stock price further rose last Friday when investors picked up beaten down cosmetics stocks on news that South Korea and China agreed to renew their currency swap deal.
Cosmax shared closed 7.32 percent up at 132,000 won on Friday. According to FnGuide estimates from multiple securities firms, Cosmax is expected to report 12 billion won in operating profit in the third quarter this year, up 0.5 percent from a year ago. Net profit is estimated to have gained 22.7 percent to 7.3 billion won during the same period.
“An increase in fixed costs including labor and R&D costs in its domestic business would drive down 35 percent of the profit from a year ago, but sales of its Chinese operation could offset the poor performance with a jump of 40 percent during the same period,” said Park Jong-dae, a researcher at Hana Financial Investment Co.
As of 12:53 p.m. Monday, Cosmax shares were 4.17 percent up at 137,500 won.
By Ko Min-suh
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]