[Click e-Stock] "Kolmar Korea: Robust Orders and Attractive Valuation... Target Price Raised"

Target Price Raised by 18.2% from Previous Level

Korea Investment & Securities on May 12 raised its target price for Kolmar Korea from KRW 110,000 to KRW 130,000, citing robust order inflows and attractive valuation. The investment opinion remains 'Buy'.

Kim Myungjoo, an analyst at Korea Investment & Securities, stated, "Current order momentum is very strong, and the valuation is also attractive. Kolmar Korea is an appealing company even outside of the peak summer season, and with summer approaching, the stock price is expected to show solid performance."

In the first quarter of this year, Kolmar Korea's consolidated revenue increased by 11.5% year-on-year to KRW 728 billion, and operating profit grew by 31.6% to KRW 78.9 billion, surpassing market expectations by 18.6%. Kim analyzed, "Kolmar Korea's domestic subsidiary achieved operating leverage beyond market expectations thanks to a significant increase in repeat orders for hit products from major clients. In the first quarter, the domestic subsidiary's sales rose by 25.0% year-on-year, outperforming the 19.0% growth in cosmetics exports, and operating profit jumped by 51.2%. Even legacy brands, which showed weak order momentum last year, recovered in the first quarter and contributed to the subsidiary's performance."

Given the continued global popularity of hero products from Kolmar Korea's major clients, operating leverage at the domestic subsidiary is expected to persist for the remainder of the year. Kim added, "Reflecting this, we have raised our estimate for the domestic subsidiary's operating margin in 2026 from 13.3% to 14.4%. It is also noteworthy that a luxury brand, which began production in the fourth quarter of last year, entered the top 10 client list of the domestic subsidiary for the first time in the first quarter of this year." He further noted, "An increasing proportion of direct exports (orders received from global brands and then exported) within total sales is expected to be a key driver for the company's long-term valuation growth."

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