Hyundai Motor Securities predicted that Handsome will continue to grow its performance due to the expansion of its new cosmetics business based on securing stable profitability, including online sales growth.
The investment opinion remained 'buy' and the target price remained at 60,000 won.
Hyundai Motor Securities explained, "Domestic clothing consumption is recovering due to improved major distribution channel business conditions and traffic such as offline and front department stores.".
"Relatively profitable online sales are growing high due to the operation of its own mall," Hyundai Motor Securities said.
"Handsome is expected stable profit growth next year with both top-line and profitability due to the normalization of offline sales due to the improvement of the clothing industry.".
"Oera, a luxury cosmetics brand launched in the third quarter, will enter duty-free shops as early as this year," Hyundai Motor Securities said. "It is expected to grow in sales due to the expansion of the number of stores next year with the entry of additional department stores in the first quarter of next year.".
"Related marketing costs are estimated at around 3 billion won in the third quarter," Hyundai Motor Securities said. "It is planning to open a perfume editing shop in the first quarter of next year, and Handsome is expected to increase its new cosmetics brand line in the future as it aims to achieve 100 billion won in sales in the cosmetics category by 2025.".
Reporter Lee Dong-hoon email@example.com