[Click eStock] "Orion, Conquering the Global Confectionery Market with Choco Pie"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 24th that it maintains a buy investment opinion and a target stock price of 150,000 KRW for Orion, expecting rapid growth not only in Korea and China but also in Vietnam and Russia, following continuous growth recently.

Han Yoo-jung, a researcher at Daishin Securities, stated, "Despite the stark differences within the confectionery market due to the COVID-19 pandemic, and the continued unfavorable business environment caused by logistics difficulties and city lockdowns, the trend of performance growth has continued thanks to crisis management capabilities across the entire 'cost-purchasing-distribution' value chain, including operational workforce structure optimization and global integrated purchasing." She added, "We expect a meaningful stock price rebound upon confirmation of the performance improvement trend."

Orion faced manufacturing cost pressure in China and Russia, but since product prices were raised in China and Russia in September and October last year, it is expected to be fully reflected this year. Additionally, the Chinese government's active measures to stabilize raw material prices are also positive factors.

The researcher explained, "This year, Korea plans to expand sales of convenient meal replacements and health functional product lines; China will expand distribution coverage; Vietnam will focus on mass-produced bread, rice crackers, gum, and candy; and Russia will expand pie and biscuit categories." She added, "The Indian subsidiary, which began full-scale product production and sales in the second half of last year, is also expected to fully develop a large brand product lineup centered on pies and biscuits, and the second factory in Russia will begin full operation in the third quarter."

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