Sangsangin Securities analyzed on the 21st that Permtek Korea's performance will continue to improve due to strong sales to small and medium-sized brands and deliveries to large domestic and international companies. They newly issued a 'Buy' investment rating with a target price of 38,000 KRW.
Sangsangin Securities expects Permtek Korea's sales and operating profit in the third quarter to reach 74.1 billion KRW and 9.4 billion KRW, respectively. Researcher Kim Hyemi from Sangsangin Securities said, "Strong sales to small and medium-sized brands and orders from the Big 2 companies in preparation for the second half consumption season are expected," adding, "Growth will continue due to factors such as the start of initial deliveries to global majors in the core stick category."
Regarding the pump business division, Researcher Kim analyzed that in addition to the increase in orders from small and medium-sized brands that drove sales growth in the first half, sales of new products to Big 2 clients are also being added in the second half. She emphasized, "Exports of the main stick products to existing North American clients remained steady," and "the long-awaited transactions with global majors, which have been anticipated since early this year, will finally begin in the third quarter, gradually boosting the momentum."
She explained, "In the tube business division, growth compared to the same period last year is expected due to recent increases in orders from pharmaceutical companies and tube sales," and "although the dry business division's sales will grow, a slight operating loss is anticipated."
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