[THE INVESTOR] Orion’s operating profit last month has improved slower than expected but still remains solid, said Korea Investment and Securities on Dec. 19 maintaining a “buy” recommendation and 150,000 won (US$133.38) target price.
Its revenue and operating profit last month rose 3.7 percent and 32.6 percent on-year, respectively, and operating margin from Chinese operations improved considerably to 14.6 percent, said analyst Lee Gyeong-ju.
Personnel restructuring along with streamlining production, sales process and marketing cost control have enhanced its profit structure. It has grown in size at home and satisfied earnings consensus having resumed expansion in Vietnam. Although revenue increase in China is slowing down, it is not time to be disappointed considering the weak yuan and inventory reduction, said the analyst.
By Hwang You-mee (firstname.lastname@example.org)