[Click e-Stock] "Conquering China with Snacks"... A Stock with Strong Performance and High Dividends

Hana Securities has raised its target price for Orion from 200,000 won to 220,000 won, while maintaining its "Buy" investment rating.

On May 20, Shim Eunju, a researcher at Hana Securities, stated, "This year marks the beginning of recovery for both performance and trust, so we continue to recommend an aggressive buying stance for the second half of the year." She added, "The stock's 12-month forward price-to-earnings ratio (PER) remains at just around 10 times, which is at the lower end of its historical range."

Shim also analyzed, "Sales in China are expected to reach a new historical high, and Orion continues to implement an aggressive shareholder policy that meets the requirements for separate dividend taxation." She noted, "Last year, the company announced a dividend per share of 3,500 won, and this year, at least a 10% increase is expected." She further added, "In addition to China, there will be visible improvements in performance in Vietnam and Russia, as well as tangible results in India."

Chinese sales, in particular, are crucial. Shim explained, "This year, sales in China are projected to exceed 1.4 trillion won, and for the first time in about a decade, double-digit top-line growth is expected." She elaborated, "The snack channel is experiencing rapid growth driven by cost-effectiveness, leading to a continued expansion in the number of stores. The share of the snack channel, which was around 2% in 2020, rose to 26% last year and is expected to reach 35% this year."

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