Kolmar Korea will gain significantly next year as Chinese inbound tourism recovers, said Shinhan Financial Investment on Nov. 30, maintaining a “buy” recommendation and raising the target price to 101,000 won (US$93.35) from 100,000 won.
Unlike its rivals, the OEM maker managed to improve its earnings at home despite the lack of Chinese tourists, and was bolstered by the new product launch of its client. Operating profit in the fourth quarter will rise 6.9 percent on year to 20.2 billion won, said analyst Lee Ji-yong.
The normalization of Korea-Chinese relations is raising anticipations for recovery and from the second quarter next year, its earnings will take an upturn, forecast the analyst. Its revenue in 2018 will increase 15.4 percent on-year to 944.9 billion won and operating profit by 33.3 percent to 97.5 billion won, he added.
Sales of cosmetics will increase 10 percent and pharmaceutical sector by 15.5 percent, noted the analyst, adding that expansion of manufacturing facilities and operation of factory in China will further boost its revenue.
By Hwang You-mee (email@example.com)