LS Securities has raised its target price for Kolmar Korea to 120,000 won, citing expectations for continued improvement in the company's second-quarter performance. The firm maintained its "buy" rating on the stock.
In a report released on June 9, analyst Oh Rin-ah stated, "In the first quarter of this year, Kolmar Korea demonstrated improvements in both revenue and profitability, with notable growth from its domestic operations. For the second quarter, we expect domestic sales to reach approximately 400 billion won, reflecting a year-on-year increase of around 20%."
Oh also noted, "With the peak season for sun care products, we estimate that the operating profit margin for the domestic division will improve to about 15% compared to the same period last year. Additionally, we anticipate that sales from the Chinese division will increase by 9.1% year-on-year to around 54.4 billion won, with the operating profit margin improving to the low 10% range due to seasonal effects."
Furthermore, she projected that the U.S. division would generate sales in the low 10 billion won range, with operating losses expected to be similar to those in the first quarter. However, she expressed optimism for gradual improvement starting in the third quarter, driven by a low comparative base and expectations for recovery in orders.
Regarding the Canadian division, Oh indicated that it is expected to maintain a stable performance similar to the first quarter, noting that some indie brands are filling the order gaps left by legacy clients, which could lead to an improved product mix.
* This article has been translated by AI.
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