[Click eStock] "Orion, Strong Performance Expected This Year... Stock Still in Undervalued Range"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a buy rating on Orion, stating that despite historically strong fundamentals, it is still considered undervalued, and raised the target price by 6% from the previous level.

Han Yujeong, a researcher at Daishin Securities, stated, "Orion has high potential for additional growth with the commencement of operations at its India subsidiary this year and the completion of its second factory in Russia next year."

In particular, strong performance is expected this year. Orion's consolidated sales for the first quarter are projected to reach 621.6 billion KRW, a 15% increase year-on-year, and operating profit is expected to rise 21% to 117 billion KRW. Even looking at the sales figures announced for January, sales in China and Vietnam increased by 74% and 40% respectively compared to the previous year.

Moreover, not only existing products but also new products and newly launched categories are showing favorable results. The launch effects of new categories in Korea (nut products, beverage products), China (mass-produced bread), and Vietnam (rice snacks, mass-produced bread), along with aggressive new product launches across all countries, are expected to sustain year-on-year growth each quarter.

Researcher Han added, "Despite the pressure from rising raw material prices, product competitiveness is expected to improve, leading to reductions in discount rates and promotional expenses," and predicted, "The trend of profitability improvement due to top-line growth is also expected to continue throughout the year."