[Click eStock] "Orion, Double-Digit Profit Growth Expected"

Ebest Investment & Securities forecasted on the 22nd that "Orion's profit growth rate this year will record double digits."

Jiwoo Oh, an analyst at Ebest Investment & Securities, stated, "Thanks to increased exports to North America and improved profit margins at the Chinese factory, the profit growth in the first quarter was significant," and presented this year's sales and operating profit forecasts at 3,159.3 billion KRW and 550.5 billion KRW, respectively. These figures represent an 8.5% increase in sales and an 11.8% increase in operating profit compared to last year.

Analyst Oh explained, "In the first quarter of this year, North American exports increased by 10%, and amid expanded production, the cost of raw materials such as flour and shortening declined, resulting in a 1.5% decrease in the cost of sales ratio," adding, "In the Chinese market, profit margins improved due to the depreciation of the yuan and the shift of chronic deficit channels, Kyungsosang (wholesale buyers who sell directly), to indirect sales."

He also noted, "In Vietnam, sales increased, leading to improved profit margins through reductions in manufacturing cost ratio, material costs, and selling and administrative expenses," but added, "However, in Russia, profit margins slightly deteriorated due to the weakening of the ruble and increases in manufacturing and administrative expenses."

He predicted, "Even if the losses of the recently acquired bio company Rigakem Bio are reflected in the performance, the overall consolidated performance decline will not be significant," and forecasted, "Despite steep growth over the past two years, double-digit profit growth will be maintained."

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