[Click eStock] "Orion, Growth Expected Despite Short-Term Q4 Earnings Slowdown"…Target Price ↓

On the 22nd, Samsung Securities maintained a buy rating on Orion, stating that while a short-term performance slowdown in the fourth quarter of this year is inevitable, expectations for performance improvement next year remain if one-off factors such as exchange rates are removed. However, the target price was lowered from the previous 170,000 KRW to 150,000 KRW.

In October this year, the combined sales of Orion's four subsidiaries recorded 245.1 billion KRW, a 3% decrease compared to the same period last year, and operating profit increased by 1% to 47 billion KRW. When excluding the effects of exchange rates, sales are estimated to have increased by 5% compared to the same period last year.

Domestic sales increased by 14% compared to the same period last year, achieving double-digit sales growth for nine consecutive months. This is considered an achievement made despite some removal of the product price increase effects implemented in the fourth quarter of last year. It is explained that market competition has eased due to the profitability preservation management strategies of major competitors, leading to an estimated expansion of Orion's market share.

Overseas sales recorded negative growth and were sluggish. Jiho Choi, a researcher at Samsung Securities, said, "Not only was it unavoidable to be affected by the decline in exchange rates, but there was also a difference in the timing of shipment of holiday promotional products around the New Year holiday next year," adding, "The difference in holiday timing in China and Vietnam businesses is a burden on the fourth quarter performance but is expected to act as an opportunity factor enabling significant sales growth in the first quarter of next year."

Orion's sales are expected to grow by 9% and operating profit by 11% year-on-year next year. Researcher Choi said, "Excluding exchange rate uncertainties, there are no fundamental concerns regarding domestic and overseas market share expansion, business expansion, and profitability improvement."

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