[Click eStock] "Korea Kolmar, North America Momentum Due to US Tariffs... Expecting Record High Performance"

Hana Securities analyzed on the 14th that Kolmar Korea is expected to achieve record-high performance this year, supported by expanded orders and production in the North American market. The investment opinion was maintained as 'Buy' with a target price of 98,000 KRW.

Hana Securities estimated Kolmar Korea's Q1 consolidated results at 640 billion KRW in sales and 52.5 billion KRW in operating profit, exceeding the market consensus of 49.8 billion KRW in operating profit. Researcher Park Eun-jung analyzed, "The main factors for the better-than-expected performance are the increased operating rate and profitability improvement of the domestic corporation due to strong exports, and the recovery in demand for over-the-counter drugs from the subsidiary HK Innoen."

By region, growth is expected in domestic, US, and China markets. Domestic sales are estimated at 280 billion KRW, a 13% increase compared to the same period last year, and operating profit is estimated at 30.8 billion KRW, up 35%. Researcher Park explained, "Despite a high base in the same period last year, it is understood to be solid thanks to increased orders for export-led brands and global brands," adding, "Pre-produced products are also entering the peak season, leading to an increase in volume."

Among overseas corporations, the US showed the most remarkable growth. The US corporation's Q1 sales were 20 billion KRW, a 186% increase compared to the same period last year, and operating profit turned positive at 1.6 billion KRW. It is evaluated that maximum sales are being recorded as shipments to major clients continue and orders for global and indie brands expand together.

The Chinese corporation's Q1 sales increased by 10% to 38 billion KRW compared to the same period last year, but operating profit is expected to decrease by 37% to 1.1 billion KRW. Although sales increased due to the recovery of advance orders, profitability recovery appears somewhat delayed.

Hana Securities estimated Kolmar Korea's consolidated sales this year at 2.7 trillion KRW and operating profit at 270 billion KRW. These figures represent an 11% and 37% increase from the previous year, respectively, and are expected to be record-high performance.

Researcher Park said, "Due to the tariff policies of the US Trump administration, inquiries about production in the US from domestic brands are increasing, and some stockpiling centered on pre-produced products is also occurring amid concerns about price increases," adding, "Kolmar Korea is about to complete a new basic plant in North America and is expected to fully enjoy related benefits."