[Click eStock] "Korea Kolmar Meets Operating Profit Consensus Amid Cosmetics Boom"

Korea Investment & Securities Issues 'Buy' Rating and 65,000 KRW Target Price... Closing Price on 14th at 52,300 KRW

[Asia Economy Reporter Geum Bo-ryeong] An analysis has emerged that Kolmar Korea's second-quarter operating profit met consensus expectations, supported by a boom in cosmetics.

According to Korea Investment & Securities on the 18th, Kolmar Korea's second-quarter operating profit was 31 billion KRW, down 18% year-on-year, meeting consensus. Sales decreased by 11% to 365 billion KRW.

Kolmar Korea generated approximately 18.3 billion KRW in operating profit from its core business, and about 12.7 billion KRW from HKN, according to estimates. Na Eun-chae, a researcher at Korea Investment & Securities, said, "Operating profits from cosmetics and pharmaceuticals in Kolmar Korea's core business appear to be 14.5 billion KRW and 4 billion KRW respectively, which is a significant improvement in cosmetics profitability compared to 8.2 billion KRW in cosmetics and 6.3 billion KRW in pharmaceuticals in the first quarter." She explained, "Despite a 21% decline in cosmetics sales, the overall operating profit margin was 7.6%, and despite overseas sluggishness, the domestic cosmetics division's operating profit margin reached 11%."

Researcher Na analyzed that if the pharmaceutical division is sold in the second half of the year, the performance of the cosmetics division and HKN will ultimately be crucial. He said, "Kolmar Korea's core business recorded its worst performance since 2013 last year," and added, "This year, the cosmetics division's operating profit is expected to be 50 billion KRW, with an operating profit margin of 6.1%."

Korea Investment & Securities gave Kolmar Korea a 'Buy' investment rating and set a target price of 65,000 KRW, revising the previous target price of 58,000 KRW upward. The closing price on the 14th was 52,300 KRW. Researcher Na emphasized, "The speed of HKN's listing progress in the second half and the momentum of cosmetics growth will determine the pace of performance and stock price rebound, but normalization is sufficiently positive even at this point."

This content was produced with the assistance of AI translation services.