[EQUITIES] ‘Cosmax to pick up from Q3’
[THE INVESTOR] Cosmax will show earnings improvement from the third quarter as its profits in the domestic market recovers, said KB Investment and Securities on July 12, maintaining a “buy” recommendation and 195,000 won (US$172.69) target price.
Its operating profit ratio at home will gain from the third quarter and revenue from China, which contributes 40 percent of its total revenue, maintains over 30 percent growth rate. Further, loss from its Ohio, US operation has been shrinking significantly since the first quarter. Its revenue in the second quarter will leap 42 percent on-year to 330 billion won and operating profit by 21 percent to 17.3 billion won, meeting market expectations. Revenue for the whole year will hike 37 percent from last year to 1.21 trillion won and operating profit 64 percent to 57.7 billion won, said analyst Park Sin-ae.
Its stock price has spiked 53 percent from January to the beginning of June and dropped 17 percent in the past month. Considering the unparalleled growth potential and upward trend of margin, however, the recent stock price fall is an opportunity to purchase, said the analyst.
By Hwang You-mee (firstname.lastname@example.org)