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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] On the 28th, Kiwoom Securities evaluated Orion, stating that the sales growth rate and profit structure are expected to improve starting from the third quarter as the channel operations of its Chinese subsidiary normalize. They maintained a 'Buy' rating and a target price of 142,000 won. The previous trading day's closing price was 91,600 won.
Kiwoom Securities commented, "Despite the slowdown in sales growth, the operating profit margin is expected to show a favorable trend due to the improvement in the profit structure of major Chinese channels and the decrease in the cost of raw and subsidiary materials. The recent stock price adjustment should be viewed as an opportunity to increase holdings."
Kiwoom Securities projected Orion's consolidated operating profit for the second quarter to be 123.6 billion won, a 10% increase compared to the same period last year, which aligns with market expectations. However, they anticipated that the sales growth rate would slow to 2% due to the delayed recovery of consumer sentiment and the sales gap resulting from the transition of the Chinese sales system.
Nevertheless, they expected the consolidated operating profit margin to rise by 1.2 percentage points compared to the same period last year, supported by the improvement in the profit structure of major channels such as discount stores in China (transition to indirect sales) and the decrease in the cost of raw and subsidiary materials across the company.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
