[Click eStock] "Orion Holdings, Possible Growth in Scale and Profit Again This Year"

IBK Investment & Securities maintained a buy rating and a target price of 21,000 KRW for Orion Holdings on the 11th, stating that significant growth in both scale and profits is expected this year as well as last year.

Nam Seong-hyun, a researcher at IBK Investment & Securities, explained, "We expect the corporate value of Orion Holdings to continue rising," adding, "The growth of Orion's confectionery division is exceeding initial expectations, the value of the Orion Bio division is likely to be highlighted in the mid to long term, and fundamental improvements such as royalty and dividend income are anticipated."

He continued, "Orion is preparing expansions and new factory constructions at most sites this year," and said, "Profitability improvements are also expected; although there will be some cost burdens until the first half of the year, stabilization in the second half will lead to a rapid increase in operating performance."

Orion Holdings' bio division is broadly divided into in vitro diagnostics, vaccines, and new drug development. In vitro diagnostics include colorectal cancer diagnostic kits, vaccines include tuberculosis vaccines, and new drugs include treatments for periodontitis. Currently, a joint venture has been established in China, and a production plant is under construction. Although it is expected to take several years until commercialization and sales generation, it is positive that the company is moving away from focusing solely on the confectionery division, and in the case of the periodontitis treatment, product launches related to consumer goods are being planned. Overseas site expansion is also a key focus.

Researcher Nam added, "Once aggressive investments in the confectionery division are completed this year, the Orion Group is likely to focus more on investments related to new businesses," and added, "The investment funds for this will likely be covered by increased royalties from scale expansion, expanded dividend income, and asset development."