[Featured Stock] Orion Drops 10% on Acquisition of Stake in LegoChem Bio

As of 9:08 AM on the 16th, Orion is trading at 104,600 KRW, down 10.67% from the previous session. This decline is interpreted as reflecting concerns that operating profit may decrease due to Orion's acquisition of shares in LegoChem Bio.

Orion announced on the 15th that it will invest 550 billion KRW to secure a 25% stake in LegoChem Bio.

This share acquisition will be carried out through a third-party allotment of new shares and the purchase of existing shares. The acquiring entity is Pan Orion Corporation Limited, an Orion affiliate based in Hong Kong, which serves as the holding company for seven subsidiaries in China. Pan Orion is a subsidiary in which Orion holds a 95.15% stake.

Kiwoom Securities forecasted on the same day that Orion's consolidated operating profit could be revised downward by more than 10% due to the acquisition of LegoChem Bio shares.

Researcher Park Sang-jun of Kiwoom Securities stated, "(The profit and loss of LegoChem Bio) will be reflected in Orion's consolidated profit and loss starting from the second quarter of this year," and estimated that "excluding one-time gains and losses, LegoChem Bio's recurring operating loss is at the level of 40 billion to 50 billion KRW, mainly due to research and development (R&D) investment expenses."

Researcher Park also noted, "Whether the profit and loss are accounted for on a consolidated basis is key in terms of earnings forecasts," and predicted that if LegoChem Bio's profit and loss are consolidated, Orion's operating profit will be revised downward by more than 10%, significantly reducing earnings visibility.

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