On the 28th, NH Investment & Securities maintained its target price and 'Buy' rating for Korea Kolmar, viewing the excessive stock price adjustment as a buying opportunity.
Researcher Jeong Ji-yoon stated, "The consolidated sales for Q4 increased by 15% year-on-year to 551.6 billion KRW, and operating profit rose by 338% to 37.8 billion KRW, which met the consensus operating profit considering a 3.5 billion KRW increase in performance bonuses." He added, "It is regrettable that a net loss of 46.5 billion KRW was recorded due to non-operating items such as goodwill impairment from Yeonwoo and impairment losses on tangible assets in the US."
He analyzed, "Domestically, SAP (enterprise ERP software) operations have been normalizing since Q4," and "The shipment volume to the existing top 2 major clients and stable orders from new growth indie clients have gradually strengthened the proportion of top clients on a separate basis, which is positive."
Regarding overseas, he noted, "At the Wuxi subsidiary in China, order items from top clients such as Sun, cushions, and foundations have increased," and "In the US, sales growth continued due to stable orders centered on lip products from the number one indie client holding prescriptions, but in Canada, sales recovery was slower than expected due to prolonged inventory adjustments by top clients."
He further stated, "Currently, separate basis order trends in Q1 are exceeding a 30% growth rate year-on-year," and "Direct export sales are expected to increase by 53% compared to the previous year due to new product launches by global brands, expansion of the Asian supply chain, and the opening of export channels for indie brands." Additionally, he forecasted that the Wuxi subsidiary's favorable business conditions would continue with over 60 clients and the planned launch of Sun products.
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