April 25, 2024

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[THE INVESTOR] Kolmar Korea’s earnings will significantly advance in the second quarter, said Eugene Investment and Securities on June 27, upgrading the recommendation to a “buy” from a “hold” and raising the target price to 105,000 won (US$93.83) from 83,500 won. 

Its revenue in the period will spike 76.7 percent on-year to 365.9 billion won and operating profit by 120 percent to 37.3 billion won. It has taken over CJ Healthcare for 1.31 trillion won and completed the merger in April, which will add 91 billion won revenue in the second quarter. The M&A will bring in 364 billion won in revenue this year and 42 billion won in operating profit, forecast analyst Lee Seon-hwa.

Meanwhile considering that it owns 50.7 percent controlling stake in CJ Healthcare, the acquisition will add 20 billion won net profit while Kolmar Korea will shell out 10 billion won for interest, and its net profit could fluctuate, the analyst said.

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