[Click eStock] "Orion Expected to Maintain Growth Led by China... Target Price Raised"

On July 15, KB Securities raised its target price for Orion from 150,000 won to 160,000 won, anticipating that the company's stable growth trend will continue. The investment opinion remains "Buy."

KB Securities researcher Ryu Eun-ae explained, "The upward revision of the target price is due to raising the target multiple from 13 times to 14 times," adding, "Shareholder returns are also being strengthened through the first-ever interim dividend since the company was founded."

Orion's provisional sales for June continued to show stable growth, mainly driven by overseas subsidiaries amid favorable exchange rates. Orion's total consolidated sales by subsidiary for June were 295.8 billion won, up 20.8% year-on-year, while operating profit rose 16.2% to 42.3 billion won, meeting the lowered market expectations. Ryu noted, "In Korea, nearly double-digit growth was recorded thanks to a rise in sales of seasonal and World Cup products and increased exports to Costco; profitability was also estimated to be close to last year's level if one-off selling and administrative expenses are excluded." She added, "In China, snack shop sales increased by 69% due to favorable foreign exchange rates, and the profit margin was maintained at last year's level." Ryu predicted, "Orion's growth will likely continue into the third quarter, centered on China, which enters the peak snack season following the second quarter."

On July 6, Orion announced its first-ever interim dividend since its founding. The dividend will be 1,750 won per share, with the record date set for July 21. Ryu commented, "We estimate the annual dividend per share (DPS), including the interim dividend, to be 4,000 won." She added, "As double-digit sales and profit growth are expected in Orion's consolidated results for 2026, and shareholder returns are being strengthened, investment appeal is increasing."

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