[Click eStock] "Orion, Stable Stock Price Rise Expected with Sales Turnaround"

Q3 Highlights Strong Performance of Russian Subsidiary
Q4 Anticipates Holiday Effects and China Economic Stimulus Measures

Sangsangin Securities analyzed on the 25th that Orion is expected to experience a sales turnaround in the future, and the stock price is likely to continue a stable upward trend. They maintained a 'Buy' investment rating and a target price of 140,000 KRW. Orion's closing price on the previous trading day was 98,700 KRW.

Kim Hyemi, a researcher at Sangsangin Securities, stated, "With an expected sales turnaround ahead, the holiday effect is anticipated to appear from the fourth quarter." She added, "Furthermore, China's economic stimulus measures are expected to have a positive impact." She also said, "Considering the current valuation, the stock price is likely to continue a stable upward trend," and "Overall, Orion raises expectations for future growth potential and is a company that can be expected to show continuous performance improvement."

According to Sangsangin Securities, Orion announced its third-quarter earnings and reported the performance of its major subsidiaries (Korea, China, Vietnam, Russia). On a simple aggregate basis, sales reached 777 billion KRW, and operating profit was 140.7 billion KRW, continuing a positive trend. In particular, the Russian subsidiary showed good results in defending overall sales through expanding the new product lineup and increasing exports.

The Korean subsidiary recorded a 0.4% decrease in sales compared to the same period last year but achieved a 2% increase in operating profit. Although consumer sentiment recovery is slow, order volumes are expected to increase ahead of the holidays. The Chinese subsidiary saw a 2% decrease in sales and a 13% decline in operating profit, continuing to face difficulties due to economic slowdown. However, the Vietnamese subsidiary posted a 4% increase in sales and a 9% increase in operating profit, recording positive results due to expanded export volumes. The most notable performance was from the Russian subsidiary, which showed outstanding results with a 28% increase in sales and a 42% increase in operating profit compared to the same period last year. This indicates that the new factory operation and the market response to new products are positive.