[Click eStock] "Orion, Meaningful Operating Profit Rebound Expected in Second Half"

Kiwoom Securities forecasted on the 28th that Orion's operating profit in the second half of the year will show a significant rebound compared to the first half. They maintained a 'Buy' investment rating and a target price of 142,000 KRW.

Park Sang-jun, a researcher at Kiwoom Securities, stated, "The consolidated operating profit for Q2 this year is expected to reach 123.6 billion KRW, a 10% increase compared to the same period last year, meeting market expectations." He added, "Thanks to improvements in the profit structure of key channels such as discount stores in China and the effect of a decrease in raw material costs across the company, the operating profit margin is expected to rise by 1.2 percentage points compared to the same period last year." He further predicted, "With the yuan exchange rate entering a strong phase, sales growth centered on the Chinese subsidiary will rebound, and the profit structure will improve compared to the past."

Park also said, "Seasonally, sales are expected to rebound starting this month, strengthening the momentum for performance improvement," and analyzed, "Operating profit in the second half of the year will show a significant rebound compared to the first half."

Regarding stock valuation, he noted, "The 12-month forward price-to-earnings ratio (PER) is at about 8.6 times, representing a significantly widened discount compared to major food and beverage companies," adding, "It is necessary to take advantage of the recent stock price correction as an opportunity to increase holdings."