IBK Investment & Securities stated on the 21st that Orion Holdings has entered a phase of fundamental improvement, recommending a buy rating with a target price of 21,000 KRW.
Nam Seong-hyun, a researcher at IBK Investment & Securities, explained, "This year is expected to be a milestone year for the Orion Group's growth. The confectionery division is likely to establish itself as a global food company as results from countries other than Korea and China begin to materialize, and it is expected to further expand related areas through aggressive investments."
He added, "Additionally, the previously underperforming video division has increased the number of productions and supply channels. We believe that operating performance is likely to improve with the recovery of the upstream industry conditions."
With the expansion and increase of the confectionery division and the recovery of key subsidiaries' performance, the combined sales of the Orion Group are expected to approach 3.5 trillion KRW next year. Considering that Orion Holdings' consolidated sales last year were 2.9346 trillion KRW, the growth rate over the next two years is estimated to reach 15%.
Furthermore, the Orion Group established Orion Biologics as a subsidiary in December last year. Since then, it has focused on aggressively securing talent and is planning additional capital increases. Since 2020, the Orion Group has established overseas joint ventures and secured pipelines such as colorectal cancer diagnostic kits and tuberculosis vaccines, showing active moves toward new businesses.
Researcher Nam stated, "These efforts are expected to accelerate further as the group has entered a phase where its structural profitability is expanding, thereby increasing its investment capacity. Additionally, the rapid global expansion of the confectionery division is also considered a contributing factor."
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