DAOL Investment & Securities analyzed on the 9th that the demand for leading and new customers' finished products for Kolmar Korea is showing growth, which will drive performance. It then raised the target stock price from the previous 130,000 won to 140,000 won while maintaining an investment opinion of 'buy.' The closing price for Kolmar Korea on the last trading day was 102,600 won.
DAOL Investment & Securities projected that Kolmar Korea's revenue and operating profit for the second quarter of this year will increase by 12% and 10% year-on-year, respectively, to 738.8 billion won and 79 billion won. It is expected that Kolmar Korea's strong performance will lead to robust results.
Park Jong-hyun, a researcher at DAOL Investment & Securities, explained, "Kolmar Korea has strong demand for finished products from leading customers, and the demand for finished products from new customers is also increasing."
However, the profit margins of subsidiaries are expected to decrease slightly. The revenue from China is anticipated to be 53.9 billion won, which is an increase of 2% year-on-year, but due to diversification of the product mix and a decrease in the proportion of new products, the operating profit margin (OPM) is estimated to decrease by 5.1% year-on-year to record 7.6%.
Revenue from the United States is expected to record 23.3 billion won, an increase of 74% year-on-year. The second U.S. plant began operations last month, and production is scheduled to start in the third quarter of this year. Revenue in Yeonwoo and Canada is forecasted to decrease by 11% and 28% year-on-year, with operating losses of 700 million won and 1.5 billion won, respectively.
Researcher Park noted, "As of the first quarter of this year, our third-largest customer is Goodai Global (formerly CJ Olive Young), and growth is expected alongside customer overseas performance growth," adding, "It is essential to pay attention to the operation of the second U.S. plant and the concretion of customer and sales strategies in the U.S."