Cosmax does not sell cosmetics directly; it is the world's No. 1 cosmetics ODM specialist, planning, developing, and manufacturing products on behalf of domestic and overseas brands to order. Revenue comes evenly from its Korean, Chinese, U.S., Indonesian, and Thai operations, and how much of the world's brands entrust it with contract manufacturing drives its results. Preliminary Q1 2026 results on May 12 confirmed record quarterly revenue of ₩682.0 billion, operating profit of ₩53.0 billion, and net profit of ₩43.8 billion, and it disclosed a new plant in Bang Phli, Thailand (about ₩56.0 billion, targeting operation in September 2026) to meet surging overseas volume. What stands out lately is that Korea, China, and the U.S. are growing at once, delivering an ROE in the 22% range at a lower earnings multiple than Kolmar Korea, a sign of undervaluation; the cautions are that the Q1 net-profit surge blends in non-operating factors such as FX, so the core pace is closer to the 3%-range operating-profit growth, and that a 271% debt ratio coincides with the new-plant investment.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 271.1%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 81.2%).
- Revenue rose 10.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 15.9% higher than a year earlier.
- ROE is 22.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.2%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Cosmax BTI 27.23% (individual)
Controlling bloc incl. related parties 27.5%
With the controlling bloc holding 28%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Cosmax is not a company that sells cosmetics directly; it is an ODM specialist that, when domestic and overseas cosmetics brands place orders, plans and develops products and manufactures them on their behalf for delivery (ODM is a model in which the manufacturer handles formulation and design and supplies the finished product).
- It mass-produces skincare, color cosmetics, sun care, mask packs, and more, and revenue comes evenly not only from domestic plants but also from overseas operations in China (Shanghai and Guangzhou), the U.S., Indonesia, and Thailand.
- In Q1 2026 the Korean operation recorded revenue of ₩423.2 billion (up 17%) from export items such as sun care, gel masks, and mists and from direct exports for overseas clients, while the Chinese operation recorded ₩194.7 billion (up 20%, a quarterly record) on demand from emerging brands.
- In other words, it is not the popularity of any particular in-house brand but how much of the world's brands entrust it with contract manufacturing that drives its results.
- The latest close is ₩173,500 and the market cap is ₩2.0 trillion.
- The price sits above its 20-day line (₩164,010) and below its 60-day line (₩183,695).
- Its short- and medium-term trends diverge, so the direction should be read separately.
- The RSI (an auxiliary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 53.5, a neutral level.
- The one-month change is +5.7%, the three-month change is -3.7%, and the position versus the 52-week high is -37.9%.
- Relative strength versus the KOSPI is 16 (on a 1-99 scale that weights the past year's return against the index with more emphasis on recent performance; higher means stronger than the market).
- That places it in roughly the top 85% of all stocks by strength.
- Over the past three months it has lagged the index by 24.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The trailing P/E ratio (how many times the past year's net profit the share price represents) is 16.00x and the P/B (how many times book equity the share price represents) is 3.53x.
- However, a substantial part of 2025 net profit of ₩123.1 billion came from non-operating income such as FX and equity-method income in the second half.
- In fact, Q4 2025 was a weak quarter in which operating profit of ₩34.4 billion actually fell year on year.
- So this trailing figure does not show the core earnings strength as it truly is.
- The real strength shows in the profitability metrics: an ROE (how much it earns in a year on its equity) of 22.1%, high versus cosmetics ODM peers, and an operating margin of 8.2%.
- Worth noting is a high debt ratio (debt versus equity) of 271%, which reflects the large working capital needed in a manufacturing and contract business to buy raw materials, make products, and collect sale proceeds, compounded by overseas plant-expansion investment.
- That said, it is in a net-cash position (net debt of about -₩192.3 billion) with more cash than debt, so the actual financial risk is lighter than the debt-ratio figure suggests.
- The current ratio (assets convertible to cash within a year versus debt due within a year) is 81.2%, not generous, so it is worth watching how much the financial burden eases as results improve.
- The top line has grown steadily.
- Revenue rose from ₩1.78 trillion in 2023 to ₩2.17 trillion in 2024 to ₩2.40 trillion in 2025, double-digit annual growth over three years, and operating profit grew over the same period from ₩115.7 billion to ₩175.4 billion to ₩195.8 billion.
- Net profit also rose, from ₩57.1 billion to ₩85.8 billion to ₩123.1 billion.
- Into 2026 the trend grew clearer: Q1 revenue of ₩682.0 billion, up 15.9% year on year, was a quarterly record.
- Net profit jumped to ₩43.8 billion off the low base of ₩10.6 billion in Q1 last year.
- This resulted from Korea's export expansion, Chinese emerging-brand demand, and the U.S. operation's contribution appearing at once.
- That said, the fact that net profit growth (+312%) far exceeded operating-profit growth (+3%) means non-operating factors such as FX also worked to lift the profit surge.
- Given this Q1 pace, full-year net profit this year looks set to exceed last year's (₩123.1 billion).
- On that basis the forward earnings multiple works out at about 11-12x, in fact lower than the 15x range calculated on last year's results.
- Recent disclosures back up the growth phase.
- A May 12 fair disclosure of preliminary Q1 results revealed revenue of ₩682.0 billion, operating profit of ₩53.0 billion, and net profit of ₩43.8 billion, confirming record quarterly revenue, and on May 19 it disclosed a new facility investment (a new plant in Bang Phli, Thailand, of about ₩56.0 billion, targeting operation in September 2026), signaling a capacity-expansion plan to get ahead of surging overseas contract volume.
- It also announced an investor-relations (IR) session the same day, and on June 1 disclosed a corporate governance report.
- A disclosure on debt guarantees backing funding for overseas plant expansion (May 20) followed as well, so overall the disclosures confirm a direction of 'top-line growth plus global production-base expansion.'
- The strengths are clear.
- As the world's No.
- 1 cosmetics ODM, it takes contract volume from brands worldwide without being swayed by the fads of any in-house brand.
- Korea, China, and the U.S. are growing at once, delivering record quarterly revenue and an ROE in the 22% range.
- That it has higher profitability at a lower earnings multiple than Kolmar Korea, which does the same business, reads as a sign of undervaluation.
- As profit rises this year, the forward earnings multiple falls below last year's trailing multiple.
- On the other hand, there are cautions.
- The Q1 net-profit surge blends in non-operating factors such as FX, so the core pace is closer to the operating-profit growth (in the 3% range).
- The financial structure also bears watching: though in net cash, with a debt ratio of 271% and a current ratio of 81% its working-capital cushion is not large, and new-plant investment in Thailand and elsewhere coincides.
- If the expansion is slow to be recouped in revenue and profit, the burden could come to the fore.
- Results are also sensitive to demand at overseas operations (especially China) and to FX.
- Checking the contract-volume trend and new-plant performance each quarter is key.
🔎 Valuation vs peers Undervalued
Kolmar Korea, which does the same cosmetics ODM/OEM contract-manufacturing business, is the direct peer, while large cosmetics-brand names and Cosmax's holding company serve as references.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kolmar Korea | 19.40x | 2.67x | 13.74% |
| Amorepacific | 30.85x | 1.33x | 4.33% |
| COSMAX BTI | 6.14x | 0.65x | 10.60% |
Kolmar Korea, the closest peer, has a P/E of 21.5x and an ROE of 13.7%, whereas Cosmax, despite a higher ROE (22.1%), has a lower P/E of 15.4x. In other words, at the same business with better profitability and a cheaper earnings multiple, it sits in a relatively undervalued position. Moreover, in a phase where profit rises above last year's, recalculating on a forward basis brings the earnings multiple lower still, to about 11-12x. By contrast, brand companies such as Amorepacific (P/E of 29.6x, ROE of 4.3%) and LG Household & Health Care differ in business character and serve only as references, with a large profitability gap. Its holding company, Cosmax BTI (P/E of 6.4, P/B of 0.68), carries a large discount inherent to holding companies and is a separate case, hard to use as a valuation yardstick for Cosmax the operating company. That said, with a high debt ratio, the pace of recouping the expansion investment is the key to any re-valuation.
Price history Close · MA20 · MA60
The latest close is ₩173,500 and the market capitalization is ₩2.0 trillion. The price sits above its 20-day moving average (₩164,010) and below its 60-day moving average (₩183,695). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.5, a neutral level. The one-month change is +5.7%, the three-month change is -3.7%, and the position relative to the 52-week high is -37.9%. Relative strength versus the KOSPI is 16 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 15% of all stocks. Over the past three months it lagged the index by 24.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -24.64% / 6M -38.75% / 12M -71.97%
Key metrics vs sector median
Valuation
The P/E of 16.00x is in line with the sector median (14.79x). The P/B of 3.53x is above the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 22.1%, above the sector average (4.0%). The operating margin is 8.2%. The debt ratio is 271.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.2B | $1.4B | $1.6B | +10.74% ↓ slower |
| Operating profit | $76.7M | $116.2M | $129.8M | +11.63% ↓ slower |
| Net profit | $37.9M | $56.9M | $81.6M | +43.44% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.1B | $1.2B | $1.4B | $1.6B |
| Operating profit | $81.3M | $35.2M | $76.7M | $116.2M | $129.8M |
| Net profit | $49.3M | $13.8M | $37.9M | $56.9M | $81.6M |
| Revenue CAGR | 4-yr avg 10.80% | ||||
Revenue rose 10.7% year over year (2023 ₩1.8 trillion → 2024 ₩2.2 trillion → 2025 ₩2.4 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 11.6% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.8%. The two-year revenue CAGR is 16.2%. In the most recent quarter (Q1 2026), revenue was 15.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 22.1% points to solid profitability.
- Revenue grew 10.7% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-12EarningsQ1 2026 consolidated preliminary results: revenue of ₩682.0 billion (up 15.9%), operating profit of ₩53.0 billion (up 3.3%), and net profit of ₩43.8 billion (a sharp increase from ₩10.6 billion in the year-earlier quarter). Record quarterly revenue.Short term: confirmation of Korea's export and China's emerging-brand demand signals continued growth. Medium term: the basis for a higher run-rate earnings strength. Source
- 2026-05-19FilingNew facility investment decision: a new plant in Bang Phli, Thailand (about ₩56.0 billion, targeting operation in September 2026), expanding overseas production capacity.Medium term: aimed at meeting surging overseas contract volume and holding the No. 1 market position. Short term: a financial-burden factor from the investment outlay. Source
- 2026-05-19IRNotice of an investor-relations (IR) session.Short term: an official communication channel for the company on results and investment plans. Source
- 2026-05-20FilingAmended filing of a decision to guarantee third-party debt (overseas subsidiaries, etc.).Medium term: backs funding for overseas operations' expansion and operations, but a factor expanding consolidated financial leverage. Source
- 2026-06-01FilingCorporate governance report disclosure.Medium term: a regular disclosure on governance and shareholder policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Market cap = current price x shares outstanding | ₩2.0 trillion | ₩2.0 trillion | Confirmed | link |
| Q1 2026 revenue, operating profit, and net profit | revenue 6,820, operating profit 530, net profit ₩43.8 billion | revenue 6,820, operating profit 530, net profit ₩43.8 billion | Confirmed | link |
| Trailing P/E (price / EPS) | 15.4x (167,300 ÷ 10,843) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-20Amended filing
- 2026-05-19Disclosure
- 2026-05-19Disclosure
- 2026-05-19Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-04-08Disclosure
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01Disclosure
- 2026-04-01OwnershipOwnership-change filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.