[Click eStock] "Orion Continues Overseas Sales Growth This Year... Target Price Up"

Target Price Raised by 7.7% Compared to Previous Level

NH Investment & Securities raised the target price for Orion from 130,000 KRW to 140,000 KRW on the 16th, anticipating continued growth in its overseas subsidiaries this year. The investment rating was maintained at 'Buy.'

Younghoon Joo, a researcher at NH Investment & Securities, stated, "The target price was increased by 7.7% compared to the previous level, calculated by applying a price-to-earnings ratio (PER) of 12 times based on the controlling shareholder net profit for 2025." He added, "This is in line with the average level of the food and beverage sector, and Orion's stock price has generally traded above a PER of 12 times, except during the period when investment sentiment deteriorated due to the acquisition of shares in Rigakem Bio."

The growth trend of overseas subsidiaries is expected to continue this year. Researcher Joo said, "Orion is one of the leading K-food companies with overseas sales accounting for 65%, and this trend is expected to persist this year." He emphasized, "Particularly, attention should be paid to the high external growth rate of the Russian subsidiary centered on pies. The Chinese subsidiary is also expected to improve sales due to the effect of the sales network replacement carried out until last year."

Orion's operating performance in March was generally favorable. Researcher Joo analyzed, "In Korea, sales increased by 7% year-on-year to 98.8 billion KRW, and operating profit rose by 9% to 15.4 billion KRW, maintaining a growth trend despite domestic recession, supported by increased export volumes." He continued, "In China, sales grew by 18% to 106.3 billion KRW, and operating profit increased by 19% to 20.3 billion KRW. Despite being after the Lunar New Year (Chunjeol), shipment volumes continued to rise, mainly through online and snack stores. Although there is a burden from rising raw material costs such as cocoa, profitability was defended through scale expansion."

In Vietnam, sales increased by 6% to 32.5 billion KRW, while operating profit decreased by 13% to 4 billion KRW. In Russia, sales rose by 47% to 25.5 billion KRW, and operating profit increased by 19% to 3.2 billion KRW. Researcher Joo explained, "In Vietnam, sales stagnated excluding the exchange rate effect due to consumption slowdown and a high base from promotional events in the same month last year." He added, "In Russia, significant growth was driven by increased volumes in the pie and biscuit categories, along with a strong ruble."