[Click eStock] Kolmar BNH's China Expansion Becomes Visible... Target Price Up 35%

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained its buy rating on Kolmar BNH on the 27th and raised the target price by 35% from the previous level to 50,000 KRW. This adjustment is based on the judgment that Atomy, a major client, is making visible progress in entering the Chinese market.

Kolmar BNH is steadily expanding sales both from Atomy, a stable domestic client, and from non-Atomy sales. Non-Atomy sales are expected to increase by about 45% this year.

The entry into China is proceeding with the same two-track strategy as in Korea. One is a joint venture with Atomy, and the other is an independent entry for non-Atomy clients. Atomy's active expansion into China is expected to have a positive impact on raising Kolmar BNH's brand awareness within China.

Sim Eun-joo, a researcher at Hana Financial Investment, said, "The independent factory for non-Atomy clients is expected to start operations in the second half of this year," adding, "The total production volume is around 70 billion KRW, with a goal of achieving 20 billion KRW in sales this year." The factory in partnership with Atomy is expected to begin operations by the end of this year or early next year. In the short term, it is anticipated that Atomy's demand in China will be met through exports from Korea.

Currently, interest in immunity has increased in China following COVID-19. Due to distrust in domestic food products, preference for imported foods is rising. Researcher Sim Eun-joo explained, "If the increase in membership recruitment within China becomes visible in the mid to long term, Kolmar BNH's performance will also trend upward," and added, "Expectations for overseas business expansion will lead to an increase in valuation."