[Click eStock] "Orion, Performance Improvement Due to Price Increase and Sales Growth"

Kiwoom Securities analyzed on the 3rd that Orion's performance improvement trend will continue due to price increases and sales volume growth. Accordingly, they maintained the target stock price at 142,000 KRW and the investment opinion as 'Buy'.

Park Sang-jun, a researcher at Kiwoom Securities, stated in a report released that day, "Orion is expected to sustain its overall performance improvement trend thanks to the recovery of domestic sales in China, price increases by the Korean subsidiary, and high growth in sales from the Russian subsidiary and exports." He added, "Additionally, based on solid cash flow and financial status, the dividend payout ratio may also increase, indicating a high potential for enhancing shareholder value in the future."

Orion's operating profit for the fourth quarter is expected to reach 163.4 billion KRW, a 16% increase compared to the same period last year, slightly surpassing market expectations. Researcher Park forecasted, "With the normalization of sales channels in China and Russia, early shipments for the Chinese and Vietnamese Lunar New Year, and high growth in export sales, both quarterly and annual records are expected to reach all-time highs."

Performance is expected to continuously improve due to price increases and sales volume growth. He stated, "We expect the overall performance improvement trend to continue, driven by △recovery of domestic sales in China, △price increases by the Korean subsidiary, and △high growth in sales from the Russian subsidiary and exports."

He also viewed positively the expansion of exports centered on the United States, Southeast Asia, the Middle East, and CIS countries from the Korean, Vietnamese, and Russian subsidiaries respectively. He explained, "The proportion of exports in total sales has expanded to around 6%, and global scalability is being granted mainly through the U.S. market." He emphasized, "In particular, the U.S. market generally has a high price level and is a market that influences other global markets, so it is necessary to pay attention to it from the perspective of enhancing global growth rates."