[Edaily Reporter Kwon Oh-seok] NH Investment & Securities announced on the 17th that it is maintaining its “Buy” investment rating and target price of 170,000 won for #Orion.

Joo Young-hoon, an analyst at NH Investment & Securities, said, “While it is regrettable that domestic profitability has declined due to rising manufacturing cost ratios,” he added, “Strong performance in overseas operations, such as in China and Russia, has offset the decline in domestic operating profit, and we believe the company’s investment appeal within the food and beverage sector remains high.”
He analyzed, “Domestic business profitability declined in May due to the weakening won and rising prices of raw materials and supplies. However, a key strength is that 69% of consolidated revenue in 2026 is generated from overseas operations, and strong performance in markets such as China and Russia can largely offset the impact of the decline in domestic operating profit.”
He further noted, “The investment appeal within the food and beverage sector remains high, and we view the increasing shareholder returns driven by a sustained upward trend in dividends per share as a positive factor.”
According to preliminary operating results for May, the domestic market recorded revenue of 100.4 billion won (down 2.6% year-over-year) and operating profit of 14.2 billion won (down 24.1%). Analyst Ju explained, “While shipments to discount stores were sluggish, other channels continued to show balanced growth. Operating profit decreased year-over-year as the manufacturing cost ratio rose due to higher raw material prices and wage increases.”
In China, the company recorded sales of 123.7 billion won (+20.8%) and operating profit of 21.8 billion won (+23.2%). He said, “Shipment volumes increased significantly, particularly in the snack shop segment, and exchange rate effects were favorable. Contrary to concerns in some markets, the issue of excess inventory among competitors following the Lunar New Year was not significant.”
In addition, Vietnam achieved sales of 40.1 billion won (+13.0%) and operating profit of 5.4 billion won (-3.6%), while Russia recorded sales of 36.9 billion won (+27.2%) and operating profit of 5.3 billion won (+51.4%). Research Analyst Ju added, “In Vietnam, profitability declined due to rising raw material and energy costs, despite the increase in volume,” and noted, “In Russia, business conditions remained strong, with overall plant utilization rates—including the pie division—exceeding 100%.”