Shinhan Investment Securities said on the 17th that Orion is entering its peak season, with sales growth and a stock rebound expected. It kept its target price at 140,000 won and a "buy" rating. Orion's closing price in the previous session was 105,000 won.
Orion's top-line growth has been sluggish over the past two years, and the stock has been weak. The cocoa price, which topped $10,000 per ton in the first half of this year, has fallen to around $6,000 since September, and the margin spread is expected to improve starting in the first quarter next year.
Last month's sales growth by country showed Korea down 2% from a year earlier, while China and Vietnam rose 6.1% and 0.5%, respectively. Russia, in particular, increased 47% in the same period. Researcher Cho Sang-hun at Shinhan Investment Securities said, "Cost pressures continued across all regions, and the manufacturing cost ratio rose except in Russia."
Shinhan Investment Securities noted that in the fourth quarter this year and next year, an aggressive strategy is needed to counter weak consumption, including expanding listings in high-growth channels and launching channel-specific products and limited seasonal items.
Cho said, "Based on 2026, the price-earnings ratio (PER) is 9.4 times, an excessively undervalued phase," adding, "If market share rises on new product launches and channel expansion, and regional expansion to Eastern Europe and the Middle East becomes visible, it could enter the premium range."