[Click eStock] "Korea Kolmar, Increased Production and Market Demand... Target Price Up"

Shinhan Investment Corp. analyzed on the 10th that Korea Kolmar's performance will continue to improve due to productivity improvements and increasing market demand. The investment opinion was maintained as 'Buy,' and the target price was raised to 107,000 KRW.

Shinhan Investment Corp. expects Korea Kolmar's consolidated 3rd quarter sales to reach 644.5 billion KRW and operating profit to be 65.7 billion KRW, representing growth of 25% and 112% respectively compared to the same period last year.

Researcher Park Hyunjin of Shinhan Investment Corp. said, "The main factor behind the strong performance is the good results of the Korean corporation, with export demand for sunscreen products within the Korean production corporation expanding not only to the U.S. but globally." He added, "We believe that the overall increase in U.S. exports of cleansing products by Korean OEM companies is accelerating the operating leverage effect."

He explained, "In the U.S., the operating rate is improving due to the client's renewed product production, and on a monthly basis, it is understood to have reached the break-even point. The Chinese corporation is contributing to sales while managing profits to avoid losses. Yeonwoo is expected to show a profit improvement trend in the second half due to production facility improvements."