Hyundai Motor Securities analyzed on the 29th that CLIO Cosmetics is experiencing continued poor performance as competition in the domestic and North American markets intensifies. It adjusted its target stock price downward from the previous 25,000 won to 18,000 won, while maintaining the investment opinion of 'buy.' The closing price of CLIO Cosmetics on the previous trading day was 14,800 won.
In the second quarter of this year, CLIO Cosmetics recorded revenue and operating profit of 82.1 billion won and 3.5 billion won, respectively, down 11.3% and 63.2% compared to the previous year.
In Korea, amidst overall poor performance in domestic channels, the H&B institutional sector saw a decline in base revenue. Furthermore, due to restructuring focused on profitability in home shopping, broadcasts decreased, leading to a 45% drop in revenue compared to the previous year. In overseas markets, base revenue declined due to intensified competition on Amazon in North America.
Ha Hee-ji, a researcher at Hyundai Motor Securities, explained, "The effect of the collaboration product launch was not significant, and the efficiency of promotions also decreased, resulting in poor profitability." Hyundai Motor Securities projected that it will record revenue of 89.5 billion won and operating profit of 5.8 billion won in the third quarter of this year. This represents an increase of 2% and a decrease of 9%, respectively, compared to the previous year.
Hyundai Motor Securities noted that a jointly developed product is set to launch in September, with additional products expected to be released from November to January next year. In the Japanese market, growth continues to be centered around cheek products.
The researcher remarked, "It is regrettable that profit deterioration continues due to intensified competition in the domestic and North American markets and decreased marketing efficiency," and added, "We will maintain a conservative outlook until we confirm significant performance improvements from new products launched in the domestic market and in North America in the third quarter."