[Click eStock] "'Group Value-Up' Orion Holdings, Target Price Maintained"

On the 5th, IBK Investment & Securities maintained its buy rating and target price of 21,000 KRW for Orion Holdings, stating that "the group's fundamentals have strengthened and deserve attention."

On the same day, Nam Seong-hyun, a researcher at IBK Investment & Securities, said, "The core confectionery division's operating performance is rapidly growing, and the effects of increased production volume and capabilities in the video division (Showbox) are becoming evident," adding, "Operating performance growth is also achieved through expanded dividend income."

Orion Confectionery's performance in January showed clear growth both domestically (a 15% increase compared to the same month last year) and in its China subsidiary (a 69.1% increase), even considering the holiday effect. Domestically, operating profit grew rapidly due to stabilization of raw material prices and market share expansion. The video division is also expected to stabilize its operating performance with hits and increased production volume such as ‘Salin Jangnangam’ and ‘Pamyo’.

Researcher Nam stated, "An increase in dividend income is also anticipated," analyzing that "the dividend per share announced by Orion in January was 1,250 KRW, an increase of 300 KRW (31.6%) compared to the previous year, reflecting active changes in shareholder return policies as the confectionery division’s operating performance grows and investments conclude."

Regarding the acquisition of a 25.7% stake in LegoChem Biosciences through its Hong Kong subsidiary on January 15, he said, "This is positive in terms of implementing a strategy to diversify the group's portfolio and strengthen competitiveness in the bio sector," adding, "The business areas are expanding around new drug development, in vitro diagnostics, and vaccine development, and the acquisition of LegoChem Biosciences shares relates to new drug development." He further noted, "While the core divisions are growing, investments are being made without significant financial burden, and investments are being executed across various fields such as vaccines, new drugs, and diagnostics."