April 27, 2024

• 

[THE INVESTOR] Kolmar Korea beat market estimates in the fourth quarter last year showing strong growth in cosmetics and health care and will continue the upturn, said KB Investment and Securities on Feb. 13, suggesting a “buy” recommendation and 80,000 won (US$69.46) target price. 

Its revenue this year will hike 24 percent on-year to 826.7 billion won and operating profit 22 percent to 89.4 billion won, estimated analyst Park Sin-ae. Sales from cosmetics and health care will continue to rise, and revenue from Beijing will leap 46 percent, while those from the US and Canada, will begin to be reflected, according to the analyst. 

Its stock price is reasonable considering the growth trend, relatively high probability, and expanding exports, said Park. Although the investor sentiment and stock price trend are not favorable, Kolmar Korea’s price-earnings ratio will be higher than the industry’s average at least for several months, added the analyst. 

Daishin Securities was more negative, saying that while its revenue from home was high, that from China missed market expectations. This year, however, Bejing operations will be able to post high growth as it settles down after last year’s expansion, said analyst Park Eun-jeong. 

The slow economy at home and political tension surrounding THAAD do not seem to be effecting the company, said Park advising investors to purchase the stocks at the current price. 

The analyst lowered the target price to 82,000 won from 90,000 won citing the fall in the industry’s price-earnings ratio but maintained a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)