Shinhan Investment Corp. announced on May 11 that it has raised its target price for Kolmar Korea from 95,000 won to 123,000 won, citing robust growth driven by strong skincare export performance from its Korean subsidiary. The investment opinion remains at 'buy.'
Park Hyun-jin, an analyst at Shinhan Investment, noted, "The strong demand for skincare exports from the Korean subsidiary is enhancing profit leverage," adding that the consolidated operating profit for the first quarter reached 78.9 billion won, a 32% increase compared to the same period last year, exceeding market expectations by more than 14%.
He further stated, "The operating profit from the Korean subsidiary surged by 51% to 51.2 billion won, driving the overall performance. The sales from luxury brand skincare contract manufacturing (ODM) are now being fully reflected, alongside strong demand for indie brand exports."
Park also highlighted that the proportion of skincare sales in the domestic market is increasing, and revenue contributions from new clients in China are expected to grow. He emphasized that improved profitability for the Chinese subsidiary is anticipated due to increased orders for sun care products.
While the U.S. subsidiary recorded a loss due to decreased orders from major clients, Park noted that the loss has been narrowing. He projected that the performance improvement trend will continue, considering the influx of new clients at the U.S. second factory and the base effect in the second half of the year.
* This article has been translated by AI.
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