[Click eStock] "Kolmar BNH Showing Recovery Both Domestically and Internationally... Target Price Maintained"

[Asia Economy Reporter Lee Myunghwan] Hana Financial Investment announced on the 8th that it maintains a buy rating and a target price of 50,000 KRW for Kolmar BNH. This is due to expectations of a recovery driven by the launch of new products in the second quarter of this year and the expansion of its client base.

Hana Financial Investment estimates that the company's consolidated sales for the second quarter of this year will be 172 billion KRW, and operating profit will be 25.2 billion KRW. These figures represent increases of 17.3% and 9.6%, respectively, compared to the same period last year. Looking at the full-year performance, it is expected that both domestic and overseas markets will recover from the first quarter low compared to last year.

Domestically, the effect of new product launches is expected to start reflecting in the results from the second quarter. Kolmar BNH launched a blood sugar treatment product using the individually recognized raw material 'Yeoju' in early April in collaboration with a domestic pharmaceutical company. The market response to the initial supply was favorable, leading to expectations of active marketing by the client company. Additionally, considering newly secured clients, significant sales contributions from Yeoju are anticipated this year.

A women's menopause product using the individually recognized raw material 'Rhubarb Root Extract' has also been launched. The menopause market was a large market worth approximately 300 billion KRW before the Baeksuo incident. Since market demand has already been proven, Hana Financial Investment forecasts that if the new product settles in the market, performance will improve.

Increased order volumes from global major pharmaceutical companies and large domestic distributors are also seen positively. In particular, a gradual increase in orders from global major clients is expected. It is anticipated that a close partnership for Asian market entry will be formed through the development of exclusive new products. Kolmar BNH's exports to China in April are estimated at about 10 billion KRW, and as the large orders for products bound for China last year have been depleted, orders are increasing monthly. Sales in China, including 'Gangso Kolmar,' are expected to rise from 70 billion KRW last year to 90 billion KRW this year.

Sim Eunju, a researcher at Hana Financial Investment, stated, "Considering local conditions such as lockdowns in major Chinese cities, these are considered solid figures," and analyzed, "Since the purchase limit for direct cosmetic imports was removed starting this year, the purchase amount per person is also expected to gradually increase."