NH Investment & Securities said concerns that Kolmar Korea's standalone revenue growth rate will slow in the third quarter are overblown, and assessed that a bargain-buying strategy is valid given solid order conditions. It maintained its investment opinion of Buy, but lowered the target price to 110,000 won from 120,000 won.
Jung Ji-yoon of NH Investment & Securities said, "Concerns about a slowdown in the third-quarter standalone revenue growth rate are only exaggerated fears," and added, "Given solid order conditions, the current share price (as of the 10th, 75,500 won) implies a 2026 price-earnings ratio (PER) of 11.6 times, so a bargain-buying strategy is valid."
NH Investment & Securities forecast Kolmar Korea's third-quarter revenue on a consolidation basis at 700.8 billion won and operating profit at 68.8 billion won. It estimated results in line with the consensus (market forecast).
In particular, it projected domestic revenue of 308 billion won and operating profit of 41.6 billion won, and expected the standalone revenue growth rate to rebound from the previous quarter.
Jung said, "From the third quarter, the sales base of existing home-shopping key clients has been lowering, and orders from color and base indie brands in the second half have expanded, so the diversification of the top-10 client portfolio has continued," adding, "The share of direct exports by overseas brands is also on an upward trend, from about 5% last year to 7%."
Among overseas markets, it predicted operating losses would narrow in the United States and Canada. Third-quarter U.S. revenue is expected to be 19.6 billion won, up 12% from a year earlier, with the operating loss narrowing from a year earlier to 3 billion won.
Jung said, "Order recovery from key clients at Plant 1 is still insufficient, and one-off expenses related to the opening of a West Coast U.S. sales office are expected to be reflected."
In Canada, third-quarter revenue was expected to be 9 billion won, down 2% from a year earlier, with the operating loss shrinking from a year earlier to 900 million won. While revenue recovery is slow due to tariff effects, cost-saving effects are anticipated.
In addition, it expected third-quarter Wuxi revenue of 33.3 billion won and operating profit of 400 million won, down 9% and 60% year over year, respectively. Yonwoo's revenue was forecast at 70.6 billion won, down 3% from a year earlier, with operating profit of 1.1 billion won, down 12%. HK inno.N's revenue was estimated at 273 billion won, up 19% year over year, with operating profit of 29.8 billion won, up 34%.