[Click eStock] Kolmar Korea, Improvement Expected in All Business Performance

[Asia Economy Reporter Junho Hwang] KB Securities on the 22nd raised the target price of Hankook Kolmar to 70,000 KRW while maintaining its investment rating.

KB Securities made this adjustment by raising its operating profit estimates for this year and next year by 11% and 9%, respectively. In the case of Hankook Kolmar, all business sectors were negatively impacted by COVID-19, but KB Securities expects a rebound this year. In particular, HK Innoen and the Chinese subsidiary are expected to significantly contribute to the increase in operating profit.

Accordingly, Hankook Kolmar's sales this year are expected to reach 1.5246 trillion KRW, a 15% increase compared to the previous year. Operating profit is also expected to rise by 22% to 148 billion KRW.

Domestic sales are projected to grow by 15%, but operating profit is expected to increase by only 4%, while Chinese sales are expected to grow by 28%, and the operating loss is forecasted to shrink by about 7 billion KRW compared to the previous year. HK Innoen is estimated to see sales growth of 14% and operating profit growth of 12% as sales of prescription drugs and beverages recover.