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JONBUR Research · Initiation

Cosmecca Korea · 241710 · Cosmetics

Cosmecca Korea: Profits Rebuilt Since 2022, Shares Up 64.9% Over a Year, Merger Filings in Focus

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Cosmecca Korea's revenue reached ₩772.1B over the twelve months to H1 2026, with a 13.2% operating margin and 25.9% ROE, and the shares have risen 64.9% in a year despite an 11.1% fall in the last month. The stock trades at 18.7x earnings and 4.4x book, and the model estimate sits above the current price but with a very wide range.

Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a clear earnings recovery. Operating margin rose from 2.6% in 2022 to 13.2% on a trailing basis, and net income rose from ₩2.7B to ₩63.8B. Revenue growth has been steady, at 22.2% in 2025.

What the data does not settle is how durable this is and what the merger filings mean. A merger decision was filed on 2026-09-11 and amended twice, but the data gives no terms, counterparty or financial effect. Free cash flow of ₩6.0B is small relative to net income of ₩63.8B, so earnings have not fully turned into free cash. Investor flows, foreign ownership and short balance data are not available.

The share price has risen 26.0% over three months but is 28.1% below its 52-week high of ₩155,500, so recent momentum is mixed.

Business overview

Cosmecca Korea is a KOSDAQ-listed cosmetics company, founded in 1999 and listed in October 2016, with 10,680,000 listed shares. It is led by co-CEOs 조임래 and 박은희. At a close of ₩111,800 on 2026-10-12, market capitalization is about ₩1.19T and enterprise value about ₩1.18T. Revenue was ₩396.5B in 2021 and ₩640.9B in 2025, so it has grown about 62% over four years. Among the peers in the data, Cosmax (₩3.35T) and Kolmar Korea (₩3.15T) are the closest in business, and both are larger by market cap. The data does not describe products or customers.

Financial analysis

All figures come from filed financial statements (DART), consolidated where available.

Revenue: ₩396.5B (2021), ₩399.4B (2022), ₩470.7B (2023), ₩524.3B (2024), ₩640.9B (2025), and ₩772.1B on a trailing basis to H1 2026.

Operating income: ₩20.1B (2021), ₩10.4B (2022), ₩49.2B (2023), ₩60.4B (2024), ₩83.5B (2025), and ₩102.2B trailing. Operating margin went from 5.1% in 2021 to 2.6% in 2022, then 10.4%, 11.5%, 13.0% and 13.2% trailing.

Net income was ₩45.4B in 2025 and ₩63.8B trailing, a 8.3% net margin. ROE was 19.3% in 2025 and 25.9% trailing, versus 22.1% in 2024.

Balance sheet: liabilities to equity is 119.6%. Cash is ₩77.5B against borrowings of ₩66.1B, a small net cash position. Free cash flow is ₩6.0B trailing.

Valuation

The shares trade at 18.7x trailing earnings, 4.4x book, 1.5x sales and a 0.5% dividend yield. EV/EBITDA is not available. At the end of 2025 the P/E was 15.7x and P/B 2.8x, so both multiples are higher now; earlier year-end multiples are not available.

Among peers, Cosmax trades at 18.2x earnings and 5.2x book, and Kolmar Korea at 17.0x and 3.1x. Amorepacific is at 27.0x and 1.4x, APR at 30.3x and 20.2x, and LG H&H has no P/E and 0.7x book. The P/E is in line with the closest peers, and P/B sits between them.

The valuation model (5-year discounted cash flow, 4.7% rate) gives a base estimate of ₩153,390 per share, with a bear case of ₩62,051 and a bull case of ₩380,811, based on trailing figures to H1 2026. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. The base case is about 37% above the ₩111,800 close, but the range from bear to bull is very wide, which shows how sensitive the result is to assumptions.

Catalysts

  • A merger decision filed on 2026-09-11 and amended on 2026-09-18 and 2026-09-28 is the key event, though its terms are not in the data.
  • A shareholders' meeting was called on 2026-10-13, together with a record date filing, which may relate to the merger.
  • Several 5%+ holding reports (2026-09-02, 09-16, 10-02, 10-06) and an insider shareholding report on 2026-10-06 show changes in ownership.
  • A new facility investment filing on 2026-09-09 points to capacity spending, with no amount in the data.
  • A news headline on 2026-10-13 says a broker (KB) expects a parts supply disruption to be resolved in Q4 and raised its target price, though the details are not in the data.

Risks

  • Free cash flow of ₩6.0B is low compared with net income of ₩63.8B, so earnings quality depends on working capital and investment.
  • Margins were 2.6% in 2022, so the current 13.2% shows earnings can swing widely.
  • The merger terms and effects on share count, debt and earnings are not disclosed in the data.
  • The model range of ₩62,051 to ₩380,811 shows the estimate is highly sensitive, and the bear case is well below the current price.
  • The 11.1% fall in the last month and the distance from the 52-week high show volatility, and flow and short-selling data are unavailable to explain it.

Closing view

The filed numbers show a company that has rebuilt margins and returns over several years, with a modest net cash position and valuation multiples broadly in line with its closest peers. Against that, cash conversion is thin, multiples are above year-end 2025 levels, and the model estimate comes with a very wide range. The pending merger is the largest unknown because its terms are not in the data. This report is not a recommendation, and the evidence is best weighed once the merger details and the next filings are available.

Model estimate of fair value

Bear
₩62,051
-34%
Base
₩153,390
+62%
Bull
₩380,811
+303%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 4.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Cosmecca Korea: Profits Rebuilt Since 2022, Shares Up 64.9% Over a Year, Merger Filings in Focus

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information