Hana Securities has projected that Kolmar Korea's performance will exceed market expectations for the time being, raising its target price to 140,000 won while maintaining a 'buy' rating.
Park Jong-dae, a researcher at Hana Securities, stated in a report that "this year, the Korean cosmetics industry is enjoying its largest global momentum ever, with exports increasing by over 25% compared to the previous year."
He estimated that Kolmar Korea's consolidated sales and operating profit for the second quarter would grow by 14% and 28% year-on-year, reaching approximately 831.5 billion won and 94.4 billion won, respectively, calling it a significant performance considering last year's high base.
While acknowledging the disappointment of losses in the North American business, he noted the stabilization of operations in China and the potential for Yeonwoo to turn a profit as positive signs. He added, "In the context of increased uncertainty in supply due to the Middle East conflict, having a large inventory of plastics has been beneficial for securing orders."
Furthermore, he remarked that although the peak season for sunscreen products has passed in the second quarter, growth rates are expected to remain strong in the second half of the year. "Ninety percent of sunscreen exports are directed towards Europe, and the effects of entering new regions and channels are significant," he explained.
He also emphasized the need to watch for potential reorders of cream products from a global luxury brand, noting that initial sales in the first quarter have shown positive consumer responses, increasing the likelihood of reorders. This marks the first time a Korean original design manufacturer (ODM) has produced high-end skincare products for a global luxury brand.
* This article has been translated by AI.
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