[Market Focus] KOLMAR Korea Drops 8% as Target Prices Cut Amid Weak Earnings

KOLMAR Korea is showing weakness in early trading.

As of 9:10 a.m. on November 10, KOLMAR Korea was trading at 65,700 won, down 8.88% (6,400 won) from the previous trading day.

The company's third-quarter results fell short of market expectations, and with securities analysts forecasting continued sluggish performance in the fourth quarter, investor sentiment appears to have weakened. KOLMAR Korea's third-quarter operating profit was 58.3 billion won, up 7% year-on-year, but below the market consensus of 68 billion won.

Jo Sojeong, a researcher at Kiwoom Securities, stated, "The results were weaker than expected due to delayed revenue recognition at subsidiary HK Inno.N. In addition, the core cosmetics business posted lower-than-expected results as both the U.S. and China subsidiaries recorded losses." She added, "We expect domestic subsidiary sales growth of 4-6% in the fourth quarter, and although growth will continue next year, the growth momentum is likely to be relatively weak compared to industry conditions." The target price was lowered from 130,000 won to 110,000 won.

Hyeong Kwonhun, a researcher at SK Securities, commented, "Despite strong growth in sales to indie clients, declining sales of legacy brands and poor performance at overseas subsidiaries are putting downward pressure on the company's overall results." The target price was reduced from 100,000 won to 90,000 won.

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