[Click eStock] Kolmar Korea, Beneficiary Stock of Industry Recovery

[Asia Economy Reporter Junho Hwang] Daishin Securities has set the target price for Hankook Kolmar at 68,000 KRW, a 13% increase from the previous target. This target price reflects an expected 21% rise in this year's projected earnings, considering the upward base effect from last year and increased order volumes due to the overseas expansion trend of major clients.

Hankook Kolmar's first-quarter projected sales are estimated at 345.1 billion KRW, down 8% from the previous year. Operating profit is also expected to decrease by 3% to 29 billion KRW. These projected results slightly exceed the performance expectations set by Daishin Securities.

However, on a separate corporate basis, sales of cosmetics are expected to decline by only 4%, limited by increased order volumes from major clients with the highest share due to their overseas expansion. The Beijing subsidiary is expected to maintain last year's performance due to the base effect, while the Wuxi subsidiary's sales are projected to increase by 48% year-on-year, likely recording quarterly sales of 10 billion KRW.

HK Innoen's sales are expected to increase by 16% year-on-year due to strong sales of K-Cap, with operating profit anticipated to expand by 31%.

Yujeong Han, a researcher at Daishin Securities, stated, "Last year, due to the impact of COVID-19, order volumes from companies with high offline exposure in the separate and Beijing subsidiaries sharply declined. Therefore, depending on the speed of industry recovery, Hankook Kolmar's performance improvement is expected to become clearly evident."

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