Kolmar Korea cuts price target despite record results: “CAPA expansion is key”

[Financial News] Hyundai Motor Securities said Kolmar Korea posted record results for its domestic entity in the third quarter of this year but still fell short of market expectations, and forecast that expanding production capacity (CAPA) would be key to future growth. It maintained its “Buy” rating but lowered its price target from 185,000 won to 160,000 won.
On the 9th, Hyundai Motor Securities analyst Ha Hui-ji said, “Kolmar Korea’s consolidated third-quarter revenue rose 21.3% year on year to 828.2 billion won, while operating profit increased 40.4% to 81.9 billion won,” adding, “The company delivered results that fell short of market expectations.”
The domestic entity posted record third-quarter results, driven by increased orders from brands in the scale-up phase and solid growth in sun-care products. Despite the seasonally slower period and supply disruptions affecting some containers, revenue rose 34.7% year on year to 433.7 billion won, and operating profit climbed 42.0% to 62.9 billion won.
Meanwhile, the U.S., Canadian and Chinese entities remained in the red. Its subsidiary Yonwoo returned to profitability as demand for sun-care and skincare pumps increased.
Revenue is expected to decline quarter on quarter in the fourth quarter due to fewer working days amid the year-end holidays. However, the domestic entity’s year-on-year revenue growth rate is forecast to reach 43%, its highest for the year. With solid orders expected to continue through the first half of next year, the completion of a raw-materials facility in July is also expected to ease production bottlenecks.
Analyst Ha said, “With demand expected to remain solid in 2027, various ways are being explored to secure production capacity in the first half,” adding, “In the second half, expanded CAPA and increased volumes from global customers are also expected to support medium- to long-term growth.”


[email protected] Im Sang-hyeok Reporter