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2、s does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment d

3、ecision.Refer to important disclosures on page 50 to 52.Analyst Certification on page 47.Price Objective Basis/Risk on page 47.12847002 Consumer-Korea ODMs,the beauty powerhouse;initiate Cosmax and Kolmar Korea at Buy Initial Opinion Accelerating time-to-market;ODM offers one-stop service We are pos

4、itive on Korea cosmetics ODMs earnings growth in 24-26E(OP growing 27%p.a.),driven by(1)accelerating vertical integration of value chain,especially consolidation into full-service providers with scalability as indie beauty brands expand globally,(2)solid domestic operation from extended capacity and

5、 resilient K-beauty brands performance driven by geographical and channel expansion into underpenetrated regions/outlets,and(3)overseas operations that improve from low(CN/US bottom-out).Korea ODMs meeting global demand with speed and scale Indie brands have an edge over established global brands,in

6、 a digitalized,budget-conscious,increasingly regulated,and geopolitically sensitive era,as they prioritize speed and flexibility.This dynamic favors leading global ODMs,such as Cosmax and Kolmar,which offer facilities in several continents with a precise and quick production lead time six months for