Cosmecca Korea: Switching Listing from KOSDAQ to KOSPI Likely to Be Completed in 2H 2025

• On 2 July, Cosmecca Korea (241710 KS) announced that it plans to switch its listing from KOSDAQ to KOSPI. Cosmecca Korea is the third largest cosmetics ODM company in Korea.

• Cosmecca Korea's ROE is similar to the average ROE of the comps. However, Cosmecca Korea's P/B valuation is 36% discount to that of the comps.

• By switching its listing from KOSDAQ to KOSPI, there is an increasing probability of the Cosmecca Korea receiving higher valuations, narrowing the gap with its peers.

Cosmecca Korea PR video (Source: Cosmecca Korea)

Conclusion First

We believe that Cosmecca Korea (market cap of 626 billion won) is likely to complete the switch in listing from KOSDAQ to KOSPI in 2H 2025, which is likely to have a slight positive impact on its share price. In the past three years, the company has been improving its sales and profits driven by higher demand for the company's cosmetics products in a post COVID environment.

Cosmecca Korea's ROE is similar to the average ROE of the comps. However, Cosmecca Korea's P/B valuation is 36% discount to that of the comps. In other words, by switching its listing from KOSDAQ to KOSPI, there is an increasing probability of the Cosmecca Korea receiving higher valuations, narrowing the gap with its peers.