COSMAX, INC. - Company Intelligence Brief

1. Business Overview

COSMAX, INC. is a South Korean company operating in the cosmetics ODM (Original Design Manufacturing) sector. The company provides contract manufacturing services for cosmetics and personal care brands, handling everything from product development to production. Based on the consolidated financial statements, COSMAX operates a capital-intensive business model with substantial fixed assets, reflected in non-current assets of KRW 991.2 billion as of December 31, 2024. The company has experienced significant asset expansion, with total assets growing from KRW 1,557.1 billion (FY2023) to KRW 1,933.7 billion (FY2024), suggesting ongoing capacity expansion or acquisition activity.

2. Financial Trend

COSMAX demonstrates strong growth momentum with improving profitability. Revenue increased 21.9% year-over-year from KRW 1,777.5 billion (FY2023) to KRW 2,166.1 billion (FY2024), following a 11.1% growth in the previous year (FY2022: KRW 1,600.1 billion). Operating profit margin expanded significantly to 8.1% in FY2024 (KRW 175.4 billion) from 6.5% in FY2023 (KRW 115.7 billion) and just 3.3% in FY2022 (KRW 53.1 billion), indicating operational leverage benefits and improved efficiency.

Net profit surged 134% to KRW 88.4 billion in FY2024 from KRW 37.8 billion in FY2023, representing a notable turnaround from the FY2022 loss of KRW 16.4 billion. However, debt levels warrant attention: total liabilities increased 18.9% to KRW 1,424.9 billion (FY2024) from KRW 1,198.5 billion (FY2023), resulting in a debt-to-equity ratio of 2.8x. The equity base remains relatively modest at KRW 508.8 billion despite retained earnings growth to KRW 383.6 billion.

3. Ownership Structure

[TRANSLATION NOTE: Ownership data not available in provided filings]

The stated capital remains unchanged at KRW 5.67 billion across all three fiscal years, suggesting no new equity issuance. Specific shareholder structure and foreign ownership percentage data are not included in the provided balance sheet and income statement extracts.

4. Key Risks

Leverage Risk: The company's debt-to-equity ratio of 2.8x, combined with both current liabilities (KRW 1,114.2 billion) and non-current liabilities (KRW 310.7 billion) increasing faster than equity, creates refinancing and interest rate exposure, particularly concerning given the capital-intensive nature of ODM manufacturing.

Customer Concentration Risk: As an ODM manufacturer, COSMAX likely faces significant customer concentration risk typical of contract manufacturers, where loss of major clients could materially impact revenue stability—though specific customer data is not disclosed in these filings.

5. Investment Consideration

COSMAX presents a compelling profitability recovery story with 22% revenue growth and margin expansion in a capital-intensive ODM model, though the elevated 2.8x leverage ratio requires monitoring amid ongoing capacity investments.