April 26, 2024

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[THE INVESTOR] Kolon Industries will miss earnings estimates in third quarter but will improve significantly, and now is the time to purchase its stocks, said Kyobo Securities on Oct. 23. 

Its third-quarter revenue will rise 1.7 percent on-year to 1.1 trillion won (US$9.74 million) and operating profit will fall 15.2 percent to 45.8 billion won, estimated analyst Son Yeong-ju.

In the fourth quarter, however, both industrial material and fashion departments will enter the high season and operating profit will rise to 68.9 billion won, said the analyst. Its one-off loss will be eliminated next year and expansion in facilities will show effect, pushing its operating profit for the whole year to 282.1 billion won, according to Son.

The analyst also noted that its stock price is undervalued and will turn remarkably bearish following the earnings guidance announcement which will confirm that it has touched the bottom in third quarter, maintaining a “buy” recommendation and 100,000 won target price. 

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