“Rising earnings expectations” ... Kolmar Korea target price raised

[Financial News] On the 13th, Hyundai Motor Securities maintained its “Buy” rating on Kolmar Korea, citing earnings expectations, and raised its target price from 170,000 won to 185,000 won.
Hyundai Motor Securities analyst Ha Hee-ji noted, “Fourth-quarter results reflecting strong growth centered on domestic operations and favorable industry conditions are worth watching,” adding, “The company has also secured medium- to long-term growth potential through capacity expansion in the second half of next year and increased volumes from global clients.”
Hyundai Motor Securities forecast that Kolmar Korea’s domestic revenue would reach 431.5 billion won and operating profit 65.8 billion won in the third quarter.
Analyst Ha said, “Despite relatively fewer operating days in the third quarter and supply disruptions affecting some packaging containers, high growth is expected to continue, supported by solid orders centered on skincare,” adding, “The container procurement issue is a temporary supply-demand mismatch caused by a surge in demand for some brands; rather, it reflects strong demand for those brands.”
She added, “The operating leverage effect from strong orders and increased sales is also expected to continue,” and said, “We have raised our expectations for fourth-quarter results to reflect the continued favorable industry conditions, and a solid earnings trend is expected to continue through year-end despite the off-season.”
However, earnings in overseas markets are expected to take time to recover. Losses are expected to continue in the United States, Canada and China, and the company is expected to respond by increasing volumes for multinational corporations (MNCs) and expanding production for Southeast Asian markets.

[email protected] Seo Min-ji Reporter