Korea Investment & Securities on October 6 raised its target price for Kolmar Korea by 15.6% to 185,000 won, citing improved performance due to expanded production capacity next year. The firm maintained its 'buy' rating.
In a report, analyst Kim Myung-joo stated, "The market conditions remain favorable, making this adjustment reasonable, and historically, stock prices have rebounded after similar adjustments."
Kim explained that the company plans to significantly increase production capacity with the opening of its Sejong plant in July next year.
Regarding the recent sluggish stock performance of Kolmar Korea, Kim attributed it to heightened profit-taking needs amid market rotations, which quickly adjusted investor expectations for the company's performance.
He added, "As the South Korean cosmetics industry enters a boom period faster than expected, investor expectations for Kolmar Korea's performance rose rapidly in July and August, likely exceeding the actual Bloomberg consensus."
For the third quarter, Kim projected sales of 833.9 billion won and operating profit of 92 billion won, indicating that operating profit is expected to meet market expectations. He noted that sales from the Korean subsidiary are anticipated to increase by 34.8% year-on-year and by 0.8% from the previous quarter, reaching 434.1 billion won, reflecting very strong performance.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.