NH Investment & Securities projected on October 7 that Kolmar Korea's fourth-quarter performance expectations will rise due to strong K-Beauty exports. The firm maintained its 'buy' rating and raised the target price from 160,000 won to 170,000 won.
Jiyun Jeong, a researcher at NH Investment & Securities, noted, "In September, South Korea's cosmetic exports surpassed $1.2 billion, setting a new record. While delays in the delivery of some brands' packaging persist, this indicates a concentrated demand for K-Beauty products." He added, "There is significant potential for Kolmar Korea's fourth-quarter standalone revenue to be revised upward compared to previous estimates."
Kolmar Korea's production capacity has expanded from 530 million units last year to 770 million units this year, with projections to double following the expansion of its Sejong plant in the second half of 2027.
The company is expected to meet market expectations for its third-quarter results. NH Investment & Securities estimates Kolmar Korea's consolidated revenue for the third quarter will reach 831 billion won, a 22% increase from the same period last year, while operating profit is projected to rise 57% to 91.8 billion won. The standalone revenue for the domestic subsidiary is anticipated to be 430 billion won, with operating profit expected to increase by 34% to 66.4 billion won.
Jeong stated, "Orders from export-driven brands are concentrated, and the share of premium products is expected to remain high due to increased global demand. Despite some cost pressures from raw materials and outsourcing, margins are expected to be significantly higher than in previous years."
NH Investment & Securities forecasts Kolmar Korea's revenue and operating profit for this year to be 3.215 trillion won and 351 billion won, respectively. For next year, they expect revenue to reach 3.582 trillion won and operating profit to be 413 billion won.
* This article has been translated by AI.
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