[Edaily Reporter PARK MIN ] On the 21st, Yuanta Securities Korea maintained its “Buy (BUY)” investment rating and target price of 172,000 won for ORION(271560), forecasting that earnings growth will continue, driven by expanded supply from its Russian subsidiary and improved profitability at its Chinese subsidiary. This represents a 53% upside potential compared to the previous trading day’s (October 20) closing price of 112,100 won.

Son Hyun-jung, an analyst at Yuanta Securities Korea, stated in a report published that day, “ORION’s consolidated revenue for the third quarter of this year is expected to reach 915.7 billion won (+10.5% year-over-year), and operating profit is projected to be 148.7 billion won (+7.9% year-over-year, operating margin of 16.2%), in line with market consensus.” However, she added, “While China and Russia drove revenue growth, we estimate that profit growth will lag behind revenue growth due to cost and SG&A burdens in South Korea and Vietnam.”

Regarding regional performance trends, Analyst Son noted, “In South Korea, while sales expanded through growth channels such as new products and Daiso’s e-commerce platform, operating profit is projected to decline by 4.5% due to rising raw material prices and increased rent,” he said. “In China, revenue grew by 13.8% as the snack shop channel continued to grow by 50% in September; however, we expect the operating profit growth rate to be limited to 9.3% due to new store openings and increased sales incentives.”

He continued, “In Vietnam, despite sales growth, profits are expected to remain at last year’s level due to the burden of energy, packaging, and logistics costs,” and analyzed, “Conversely, Russia is expected to lead the improvement in performance by posting an operating profit of 17.3 billion won (up 47.9% year-over-year). High capacity utilization rates and falling raw material prices have led to improved profitability.”

Yuanta Securities Korea projected that Russia and China will drive profit growth in 2027.

The firm predicted that growth in Russia would be supported by the full-year contribution of a new pie production line that began operations in September 2026, as well as expanded production at existing facilities. It analyzed that, with the utilization rate at existing plants exceeding 100%, there is significant potential for additional supply to translate into increased sales volume. The new factory building in Tver is expected to expand the foundation for medium- to long-term growth following its completion. In China, amid continued sales growth centered on snack shops and e-commerce, the firm identified the alleviation of initial store setup costs and the management of sales incentives as key factors in improving profitability.

Regarding cost management and valuation attractiveness, Analyst Son stated, “While cost pressures persist in South Korea and Vietnam, the company is addressing them through consolidated raw material procurement and supplier diversification.” He added, “With valuation pressures easing due to the recent stock price correction, expanded supply from Russia and improved profitability in China support the stock’s investment appeal. He emphasized, “Whether future profit growth translates into shareholder returns, such as increased dividends, is expected to be a key factor in the company’s revaluation.”

Yuanta Securities Korea estimated ORION’s 2026 annual consolidated revenue at 3.7406 trillion won and operating profit at 622.9 billion won. It further projected that in 2027, the company would record revenue of 4.0824 trillion won and operating profit of 722.1 billion won.