[Edaily Reporter Kim Kyung-eun ] On the 13th, SamsungSecurities raised its target price for KOLMAR KOREA(161890)by 21.4% from 140,000 won to 170,000 won, citing expectations that the company’s growth momentum will continue. The firm maintained its “Buy (BUY)” rating.

Jeong Dong-hee, an analyst at SamsungSecurities, stated in a report released that day, “In light of strong second-quarter earnings, as well as the continued strength of the Korean subsidiary and improving capacity utilization rates at overseas subsidiaries ahead of the peak season in the second half of the year, we have raised our 2026 and 2026 operating profit forecasts by 12% and 7%, respectively.”

KOLMAR KOREA’s second-quarter revenue reached 861.3 billion won, a 17.8% increase year-over-year. Operating profit stood at 110.3 billion won, up 50.1% from the same period last year. Operating profit exceeded the market consensus by 15.8%.

The strong performance was driven by the Korean subsidiary and its affiliate, Yeonwoo. The Korean subsidiary’s second-quarter revenue reached 430.4 billion won, a 31.2% increase year-over-year. Operating profit rose 44.5% to 70.8 billion won, with an operating profit margin of 16.4%.

As the peak season for sun care products took full effect, operating leverage expanded as the company’s largest sun care client posted growth of over 80% for two consecutive quarters.

Yeonwoo’s revenue reached 91.1 billion won, a 28.9% increase year-over-year. Operating profit surged 775.0% to 7.0 billion won, marking a return to profitability. Profit exceeded previous break-even point (BEP) estimates as orders for pump containers expanded from major Original Design Manufacturer (ODM) clients in the cosmetics sector.

Revenue at the Chinese subsidiary reached 57.9 billion won, a 16.0% increase compared to the same period last year. As the product mix shifted from makeup to sun care, the operating profit margin stood at 9.9%.

The North American subsidiary posted an operating loss in the 2 billion won range, combining results from the U.S. and Canada.

HK inno.N Corporation’s revenue increased by 1.6% year-over-year. Operating profit rose by 53.8%, and the operating profit margin stood at 11.2%.

Analyst Jeong noted, “We expect the number of operating days in South Korea during the third quarter to decrease by about 8% compared to the second quarter,” but added, “We understand that the volume of orders received is expected to exceed that of the second quarter.” He continued, “Although the third-quarter revenue mix is shifting from sun care to skin care, growth is expected through pure volume leverage, coupled with an upward leveling of margins across the basic skincare category (estimated to be in the mid-10% range).”

He explained, “The headquarters’ current operating rate stands at 81%,” adding, “Since the new Sejong plant is scheduled to begin operations in the second half of 2027, the constraints on short- to medium-term growth lie not in demand but in production capacity and operating days.” He further assessed, “We are seeing growth that is common among ODM companies,” noting that the company represents “an attractive option that allows investors to comfortably benefit from the relatively stable performance of its subsidiaries and the growth of the headquarters.”