[Click e-Stock] "Kolmar Korea, Earnings Expectations Keep Rising... Target Price Up"

On July 8, Hana Securities raised its target price for Kolmar Korea from 1.1 million won to 1.4 million won, anticipating that the company will continue to deliver results that exceed expectations. The investment rating was maintained as 'Buy'.

Jongdae Park, a researcher at Hana Securities, explained, "In 2026, South Korea's cosmetics industry is experiencing its strongest ever global momentum, with exports expected to grow by more than 25% year-on-year, led especially by the basic cosmetics category in European and U.S. markets. Given this, Kolmar Korea's performance may continue to exceed expectations for the foreseeable future," adding, "We are raising our target price based on upward revisions to our earnings estimates and appropriate valuation."

Hana Securities estimated Kolmar Korea's consolidated sales and operating profit for the second quarter of this year at 831.5 billion won and 94.4 billion won, respectively. These figures represent year-on-year growth of 14% and 28%, respectively. Park noted, "The domestic business is expected to grow by 25%, which will drive the improvement in earnings. Considering last year's high base, this is a remarkable result." He added, "While the loss in the North American business is disappointing, the stabilization of the Chinese business and the possibility of Yonwoo turning to profit are positive factors."

The earnings outlook for Kolmar Korea continues to be revised upward. Park commented, "Although the busy season for sun care products has passed in the second quarter, growth in the second half is also unlikely to slow. Ninety percent of sun care exports are bound for Europe, and the impact of entering new regions and channels is significant." He also pointed out, "In addition, the strong sales of other basic products suggest that the second-half growth rate could be higher than expected."

Park believes that there is ample upside potential for the stock price. He said, "Until now, valuation has been excessively low due to supply-demand issues rather than fundamentals. As earnings forecasts are rising and valuations are normalizing, there is sufficient upside potential for the share price."

This content was produced with the assistance of AI translation services.