[Edaily Reporter Kwon Oh Seok ] HANWHA INVESTMENT & SECURITIES announced on the 23rd that it is maintaining its “Buy” investment rating and target price of 120,000 won for KOLMAR KOREA(161890).

Han Yu-jeong, an analyst at HANWHA INVESTMENT & SECURITIES, stated, “On a consolidated basis, second-quarter revenue is expected to reach 8309억원 (up 13.7% year-over-year), and operating profit is projected to be 935억원 (up 27.3%), indicating that the robust earnings trend will continue,” adding, “Following the first quarter, earnings growth is expected to be driven primarily by the non-consolidated segment in the second quarter as well.”
She emphasized, “Driven by domestic clients’ expanding exports, the order intake environment is stronger than expected. With continued production expansion for global MNC (multinational corporation) luxury brands and accelerating growth among major clients, standalone revenue is projected to reach 406.2 billion won (+23.8%) and operating profit 63.0 billion won (+28.4%), maintaining a strong growth trajectory.”
He explained that the key point is that the robust growth in orders at the Korean subsidiary is not a one-time occurrence. An analyst elaborated, “It is positive that this is not merely an increase in orders from a specific client, but rather reflects an overall expansion of exports and SKUs (stock-keeping units) across the client base, and that the number of products and brands for global MNCs is likely to increase.”
He noted, “In the third quarter, the number of business days is lower due to summer vacations and the Chuseok holiday, so there is a possibility of production schedule delays. Nevertheless, driven by the strong trend of order growth, while standalone second-half revenue for 2022–2024 was on average 10% lower than the first half, it is projected to be only 2% lower on average for 2025–2027. He predicted, “Volatility in first- and second-half earnings will be significantly reduced compared to the past.”
The analyst added, “The Korean subsidiary is the main driver of upward revisions to estimates since the second quarter. In Korea, high revenue levels are likely to continue in the second half, supported by increased exports from major clients and expanded production for global multinational corporations (MNCs). In the U.S., while it will take time to return to profitability, the fact that losses are narrowing quarter by quarter is a positive sign.”
Furthermore, he added, “Visibility is particularly high given that discussions regarding new clients for Plant 2 are centered on customers with whom the company already has a business relationship in Korea, rather than being based on vague expectations. While the overall trend of upward earnings revisions is similar to that of the first quarter, we are paying close attention to the possibility that the sustainability of standalone high growth and the reduction of losses in the U.S. will become increasingly clear as we move into the second and third quarters.”