[Click eStock] "Orion, Rapid Sales and Profit Growth in 4 Asian Countries"

Hi Investment & Securities forecasted that 'Orion' will soon see a recovery in its stock price as it shows rapid external growth overseas despite the economic downturn.

According to Hi Investment & Securities on the 20th, Orion's consolidated sales and operating profit of the four major affiliated corporations (Korea, China, Vietnam, Russia) combined in January this year increased by 35.6% and 70.6%, respectively, compared to the same period last year.

In Korea, along with increased sales, the margin improved due to a decrease in raw material prices. Sales and operating profit grew by 15.0% and 25.6%, respectively. Notably, China's sales growth rate reached 69.5%. Vietnam and Russia also recorded sales growth rates of 15%.

Lee Kyung-shin, a researcher at Hi Investment & Securities, said, "China's corporation showed rapid external growth as sales during the Lunar New Year were reflected," adding, "Based on a solid market dominance within China, sales and operating profit are expected to grow even after the Lunar New Year." He also predicted, "The jelly line, which completed expansion at the end of last year, has started production, which will have a positive effect on sales and profitability."

The researcher analyzed, "Vietnam will generate profitability leverage by increasing shipments of existing key brands," and "Russia is also expected to show growth in the mid- to long-term as pie and jelly line production at the second plant becomes full-scale."

He evaluated, "Considering Orion's current cash-generating ability, the current stock price is in an excessively adjusted phase," and "As the trend of improving operating strength exceeding market expectations continues, the target stock price will also be revised upward."