Korea Kolmar is showing strong performance early in the trading session, buoyed by expectations of growth both domestically and internationally. Analysts have raised their forecasts for the company's second-quarter performance, improving investor sentiment.
As of 10:49 a.m. on June 26, Korea Kolmar shares were trading at 90,800 won, up 4,200 won (4.85%) from the previous trading day. The stock even surged to 92,000 won at one point during the session.
Daol Investment & Securities released a report the previous day predicting that Korea Kolmar would exceed market expectations for the second quarter, driven by improved profitability in its domestic operations and an expansion of overseas clients.
Park Jong-hyun, an analyst at Daol Investment & Securities, stated, "The expansion of orders from major clients will likely lead to results that surpass market forecasts," adding that "operating profit margins will continue to improve." The firm estimates that Korea Kolmar's consolidated sales for the second quarter will increase by 15% year-on-year to 837.9 billion won, with operating profit expected to rise by 31% to 96.1 billion won during the same period.
Recently, Samsung Securities also assessed Korea Kolmar positively, noting that the growth in sun care products and the expansion of new clients in China are becoming a reality.
Jung Dong-hee, an analyst at Samsung Securities, remarked, "Ahead of the summer peak season in the second quarter, we recorded strong performance due to increased orders for sun care products," and added, "The domestic operations are expanding their sales leverage, leading the overall performance of the company." He further explained that acquiring additional global manufacturing and development clients, along with the profitability turnaround of the Chinese subsidiary, will serve as future growth drivers.
The recent approval of new sun care ingredients by the U.S. Food and Drug Administration (FDA) is also seen as a long-term benefit. Jung noted, "In overseas markets, capabilities in formulation, regulation, and quality control are crucial beyond mere manufacturing capacity," asserting that Korea Kolmar's competitiveness in sun care will remain valid in the long term.
On June 23, National Geographic highlighted Korea Kolmar's UV Tech Innovation Research Institute, stating that "Korea's cosmetics research and development is leading global trends in sunscreen products."
* This article has been translated by AI.
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