Shinyoung Securities announced on October 15 that it has raised its target price for Kolmar Korea by 13% to 180,000 won, citing a diversification of export regions and an expansion in skincare orders that are easing seasonal fluctuations. The firm maintained its 'buy' rating.
Lee Kyo-seok, a researcher at Shinyoung Securities, stated in a report that it is an opportune time to expect a reduction in seasonal impacts.
For the third quarter, the firm estimates that Kolmar Korea's revenue will reach 434.7 billion won, a 35% increase compared to the same period last year, with an operating profit projected to rise by 52% to 67.4 billion won, resulting in an operating margin of 15.5%.
Lee noted that while some clients have experienced supply issues with packaging, he does not believe this will significantly hinder overall growth. He anticipates that the diversification of packaging suppliers will prevent similar issues from recurring.
Additionally, he projected that revenue from the U.S. subsidiary would see a slight increase to 18.6 billion won compared to the previous quarter, stating that while client orders are rising, it is too early to expect significant growth.
Looking ahead to the fourth quarter, Lee expects robust client orders and a lower comparative base to result in the highest revenue growth rate of the year. He added that while there may be variations depending on overtime and special shifts, the increased number of working days compared to the third quarter is expected to favor revenue generation.
* This article has been translated by AI.
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