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Korea Investment raises Kolmar Korea target price to 185,000 won, keeps buy
En breve
Korea Investment & Securities raised its target price for Kolmar Korea to 185,000 won from 160,000 won, a 15.6% increase, and kept a buy rating, citing a recovering cosmetics industry. The brokerage forecast third-quarter consolidated revenue of 833.9 billion won, up 22.1% from a year earlier, and operating profit of 92 billion won, up 57.7%, in line with market expectations. Kolmar Korea shares had fallen 11.87% over the previous month, which the analyst attributed to profit-taking and a rapid reset of investor expectations.
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Korea Investment & Securities raised its target price for Kolmar Korea to 185,000 won from 160,000 won, a 15.6% increase, and kept a buy rating on the cosmetics contract manufacturer, Maeil Business and Asia Economy reported, citing a recovering cosmetics industry. Korea Economic Daily also reported that the brokerage lifted its target price and expects the share price to trend upward after a reset in expectations. [ 1 , 2 , 3 ]
Kim Myung-joo, an analyst at the brokerage, said the industry is entering a boom and that the company's earnings are clearly improving, though the pace of improvement will not always match investors' expectations. He called the reset in expectations healthy and said the share price has recovered without fail after similar past adjustments, adding that the heyday of the Korean cosmetics industry has only just begun. [ 2 , 3 ]
The brokerage forecast third-quarter consolidated revenue of 833.9 billion won, up 22.1% from a year earlier, and operating profit of 92 billion won, up 57.7%, with an operating margin of 11.0%, in line with market expectations. Asia Economy added that the Korean entity is expected to post revenue up 34.8% at 434.1 billion won and operating profit up 50.4% at 66.6 billion won, while the China entity is expected to see revenue fall 10.0% and post an operating loss of 1.8 billion won. Yeonwoo, which the note says returned to profit, is expected to stay in the black, and the US entity is expected to follow a trend similar to the second quarter. [ 2 , 3 ]
Kolmar Korea shares closed the previous session at 136,000 won and had fallen 11.87% over the past month, while the KOSPI rose 6.72% over the same period, Maeil Business reported. Asia Economy recorded the stock at 137,700 won at 15:30 on October 6, up 0.81% from the previous close. Kim attributed the underperformance to rising profit-taking demand and to investors rapidly resetting their expectations for the company after raising them in July and August above the Bloomberg consensus. Maeil Business reported that Kolmar Korea plans to open a Sejong plant next July, expanding production capacity well beyond current levels. [ 2 , 3 ]
Por qué importa
The note is a broker's call on Kolmar Korea, a contract manufacturer that makes products for many cosmetics brands, and it treats the company's earnings as a read on the wider Korean beauty industry, which the analyst says is entering a boom. Beyond the company and its shareholders, the documents point to no wider consequence.
Datos clave
- Korea Investment & Securities raised its target price for Kolmar Korea to 185,000 won from 160,000 won, a 15.6% increase, and kept a buy rating, according to Maeil Business and Asia Economy. [ 2 , 3 ]
- Korea Economic Daily reported that the brokerage raised its target price and expects the share price to trend upward after a reset in expectations. [ 1 ]
- Analyst Kim Myung-joo of Korea Investment & Securities said the industry is entering a boom and the company's earnings are clearly improving, though the pace will not always match investors' expectations. [ 2 , 3 ]
- The brokerage forecast third-quarter 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. [ 2 , 3 ]
- Kolmar Korea shares closed the previous session at 136,000 won and had fallen 11.87% over the past month, while the KOSPI rose 6.72% over the same period, Maeil Business reported. [ 2 ]
- Asia Economy recorded the stock at 137,700 won at 15:30 on October 6, up 0.81% from the previous close. [ 3 ]
- The brokerage expects the Korean entity to post third-quarter revenue up 34.8% at 434.1 billion won and operating profit up 50.4% at 66.6 billion won, while the China entity is expected to see revenue fall 10.0% and post an operating loss of 1.8 billion won, Asia Economy reported. [ 3 ]
- Kolmar Korea plans to open a Sejong plant next July, expanding production capacity well beyond current levels, Maeil Business reported. [ 2 ]
Confirmado por varias fuentes
- Korea Investment & Securities raised its target price for Kolmar Korea from 160,000 won to 185,000 won. [ 2 , 3 ]
- The brokerage kept a buy rating on the stock. [ 2 , 3 ]
- The research note was written by Korea Investment & Securities analyst Kim Myung-joo. [ 2 , 3 ]
- The brokerage forecast third-quarter consolidated revenue of 833.9 billion won, up 22.1% year on year, and operating profit of 92 billion won, up 57.7%, against market expectations. [ 2 , 3 ]
- Kolmar Korea's share price had been weak over the month before the note. [ 2 , 3 ]
Aún sin aclarar
- Why Kolmar Korea shares fell over the past month Two outlets attribute the decline to higher profit-taking demand and to investor expectations having run above Bloomberg consensus, but this is one brokerage's analyst view and no other party is cited.
- Third-quarter results by subsidiary The Korean entity's revenue and profit growth, the China entity's revenue decline and operating loss, and the Yeonwoo turnaround are given only by Asia Economy, citing the brokerage, with no second outlet.
- Whether investor expectations were set above Bloomberg consensus in July and August This is stated only by Asia Economy, attributing it to the analyst's estimate.
- Any comment from Kolmar Korea itself None of the documents include a statement or response from the company.
Qué dicen los medios locales
Cronología, hora local
- Korea Economic Daily reports that Korea Investment & Securities raised its target price on Kolmar Korea, expecting the share price to trend upward after the adjustment. [ 1 ]
- Maeil Business publishes the detail: target price raised 15.6% to 185,000 won, buy rating kept, and third-quarter revenue and operating profit forecasts of 833.9 billion won and 92 billion won. [ 2 ]
- Kolmar Korea trades at 137,700 won, up 0.81% from the previous close, according to Asia Economy's market data. [ 3 ]
- Asia Economy reports the same analyst note, adding the Korean entity's 34.8% revenue growth forecast and the China entity's expected 10.0% revenue decline and 1.8 billion won operating loss. [ 3 ]