DAISHIN SECURITIES projected on the 19th that ORION will continue to show steady performance improvement. It maintained its investment opinion of "buy" and raised the target stock price from 130,000 won to 140,000 won. ORION's closing price on the previous trading day was 112,800 won.
Jung Han-sol, a researcher at DAISHIN SECURITIES, predicted that ORION would continue to grow in sales based on normalizing channel sales and launching new products. He noted, "Despite the sluggish domestic consumer sentiment, sales will increase in growing channels such as e-commerce and convenience stores due to the expansion of cost-effective products," adding, "Sales growth will be achieved despite reduced festive effects in China and Vietnam, thanks to favorable exchange rates."
According to DAISHIN SECURITIES, ORION's estimated revenue and operating profit for the first quarter of this year (January to March) are 792 billion won and 128.8 billion won, respectively. These figures are 6% and 3% higher compared to the same period last year.
However, the researcher mentioned the burden of raw material costs such as cocoa and oils. The researcher stated, "There is a cost burden with rising prices for raw materials such as cocoa and oils," and added, "In Korea, some product prices were increased in December last year, while overseas, we will work to defend margins through efficient sales and administrative expense execution."
The researcher also said, "Although ORION's stock price has recently shown an upward trend, considering its solid domestic performance and high overseas sales proportion (60%) despite domestic consumption slowdown, the burden of valuation will be limited."