Samsung Securities announced on August 13 that it has raised its target price for Kolmar Korea from 132,500 won to 170,000 won, an increase of 28.3%, while maintaining its investment rating at 'buy.'
In a report released that day, analyst Jeong Dong-hee noted that Kolmar Korea reported second-quarter sales of 861.3 billion won and operating profit of 110.3 billion won, exceeding market expectations. He explained that the Korean subsidiary, benefiting from peak season performance in sun care, achieved 430.4 billion won in sales and 70.8 billion won in operating profit, with its largest customers growing over 80% for two consecutive quarters, leading to expanded operating leverage.
He also added that the performance of the packaging subsidiary, Yongwoo, improved as it secured orders for pump containers from major clients, resulting in 91.1 billion won in sales and 7 billion won in operating profit, surpassing previous breakeven estimates.
Samsung Securities anticipates continued growth in the second half of the year. Jeong stated that while there will be an impact from a decrease in domestic working days (approximately -8%) compared to the second quarter, the order volume is expected to exceed that of the second quarter. He projected that even with a shift in the sales mix from sun care to skin care in the third quarter, overall margin improvements across basic categories (estimated in the mid-10% range) and growth through pure volume leverage are likely.
He further noted that with the current headquarters operating rate at 81% and the new factory in Sejong set to begin operations in the second half of 2027, the constraints on medium-term growth are related to capacity and working days rather than demand. He assessed that in a situation where common growth among ODM companies is confirmed, investors can comfortably enjoy the stable performance of subsidiaries and headquarters growth.
* This article has been translated by AI.
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