[Click eStock] "Kolmar BNH Expected to Rebound with China's Reopening"

[Asia Economy Reporter Jang Hyowon] NH Investment & Securities analyzed on the 3rd that Kolmar BNH is expected to see a turnaround in sales in China for its largest client Atomy, following China's reopening.

Baek Joon-gi, a researcher at NH Investment & Securities, stated in a report on the day, "Kolmar BNH is the No.1 private health functional food OEM and ODM company in Korea, having grown alongside its major client Atomy, and has focused on overseas business over the past two years," adding, "This year, attention should be paid to China's reopening and Atomy's expansion of sales in China."

Researcher Baek Joon-gi analyzed, "Although there were difficulties in expansion over the past two years, this year is expected to be different," and "Atomy is expected to implement an aggressive sales expansion strategy in China based on China's reopening and anticipated revenge consumption."

Researcher Baek said, "The rebound following the reopening will also be significant, and although the company's performance is estimated to be sluggish until the fourth quarter of last year, improvement is expected to begin from the first quarter of this year," forecasting, "Annual sales in China this year are expected to reach 87 billion KRW, a 20% increase compared to the previous year."

Furthermore, he analyzed, "Sales growth is also expected for the bitter melon extract product, which obtained individual recognition-type raw material approval in January last year and began sales in April," explaining, "There are more than 6 million diabetes patients domestically, indicating large market demand, and this product is the only individually recognized product for blood sugar improvement in Korea."

Researcher Baek projected that Kolmar BNH's sales this year will increase by 13.5% year-on-year to 658.8 billion KRW, and operating profit will rise by 41.8% year-on-year to 96.4 billion KRW. He stated, "Both health functional foods and cosmetics are expected to turn around," and added, "Considering that the export ratio is expected to exceed 30% by the end of the year, it is reasonable to apply a premium compared to the industry."