[Click eStock] Orion, Burden of Base Effect Ending... Earnings Momentum in Second Half

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities stated on the 17th that it maintains a Buy rating and a target price of 175,000 KRW for Orion, as the performance momentum in the second half of the year is expected to be re-emphasized.

In the first half of the year, the burden from the previous year's low base related to COVID-19 had a significant impact. This was a reflective benefit due to production and sales disruptions among competitors, resulting in a relatively large base burden within the industry from the previous year. Additionally, rising raw material costs and one-time expenses contributed to making the first half a generally challenging period.

However, the performance momentum is expected to strengthen again in the second half. Sales capabilities and efficiency have improved through expanded regional coverage by corporation and the transition of the supply system. Not only cost efficiency but also the launch of new products for sustainable growth is steadily progressing.

Jomi-jin, a researcher at NH Investment & Securities, analyzed, "The effects of restructuring and new product launches are expected to become more visible as we move into the second half. Since raw material prices have been rising since the second half of last year, the cost burden is also expected to gradually ease."