[Click eStock] "Kolmar Korea Expected to Resume Uptrend After Market Expectations Adjusted... Target Price Raised"

Korea Investment & Securities announced on October 6 that it has raised its target price for Kolmar Korea from 160,000 won to 185,000 won, expecting the stock price to resume an upward trend after market expectations are adjusted. The investment opinion remains ‘Buy’.

Kim Myoungju, an analyst at Korea Investment & Securities, stated, “While it is clear that the company’s performance is improving as the industry enters a boom period, the pace of improvement does not always align with investor expectations.” Kim added, “Given that the business conditions remain robust, the adjustment in market expectations is a healthy sign, and historically, the stock price has consistently recovered following such adjustments.”

Over the past month, Kolmar Korea has exhibited weak stock price movements. Analyst Kim explained, “As profit-taking demand increased due to sector rotation in the market, investor expectations regarding Kolmar Korea’s performance were quickly adjusted. The South Korean cosmetics industry entered a boom period faster than the market anticipated, leading investor expectations for Kolmar Korea’s performance in July and August to rise rapidly. It is estimated that these expectations were higher than the actual Bloomberg consensus. This contributed to the stock price adjustment, despite the outlook that Kolmar Korea’s Korean subsidiary is expected to report robust third-quarter results in line with Bloomberg consensus.”

For the third quarter of this year, Kolmar Korea is expected to post consolidated revenue of 833.9 billion won, up 22.1% year-on-year, and operating profit of 92 billion won, up 57.7%, in line with market expectations. Revenue from the Korean subsidiary is expected to be strong at 434.1 billion won, up 34.8%, with an estimated operating profit of 66.6 billion won, up 50.4%. The Chinese subsidiary is expected to post a disappointing performance, with revenue down 10.0% and an operating loss of 1.8 billion won. Yonwoo, which achieved a turnaround in the third quarter, is expected to maintain a profitable trend during the quarter, while the U.S. subsidiary is expected to deliver results similar to the second quarter.

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