April 20, 2024
Stocks & Bonds
[EQUITIES] ‘Kolon Industries hurt by raw material price hike’
[THE INVESTOR] Kolon Industries’ first-quarter earnings will continue to be hampered by the raw material price hike, said KB Investment and Securities on Feb. 9, lowering the target price to 100,000 won (US$87.28) from 110,000 won.
Its fourth-quarter operating profit fell 11 percent on-year burdened by the hike, explained analyst Baek Yeong-chan.
Operating profit of its fashion division dropped sharply on account of a 9 billion won loss from inventory stock disposal, but as it is a one-off cost profit is likely to rebound especially from outdoor apparel sales in China, said the analyst.
The sales price hike in industrial material division, however, will not be able to catch up with that of raw materials, added Baek.
The fashion and film sectors are gradually recovering and expansion will be completed next year, noted the analyst maintaining a “buy” recommendation advising to hold the stocks for the long term.
By Hwang You-mee (glamazon@heraldcorp.com)
Its fourth-quarter operating profit fell 11 percent on-year burdened by the hike, explained analyst Baek Yeong-chan.
Operating profit of its fashion division dropped sharply on account of a 9 billion won loss from inventory stock disposal, but as it is a one-off cost profit is likely to rebound especially from outdoor apparel sales in China, said the analyst.
The sales price hike in industrial material division, however, will not be able to catch up with that of raw materials, added Baek.
The fashion and film sectors are gradually recovering and expansion will be completed next year, noted the analyst maintaining a “buy” recommendation advising to hold the stocks for the long term.
By Hwang You-mee (glamazon@heraldcorp.com)
