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[Alpha Biz= Reporter Kim Sangjin] NH Investment & Securities analyzed that Orion (271560) experienced significant sales growth across major overseas subsidiaries in November, boosted by the shipment of holiday products. 

 

The firm also noted that the pressure from rising raw material costs could be mitigated through price increases, defending profitability. It maintained its "Buy" rating and target price of 130,000 KRW. With the previous trading day’s closing price at 99,800 KRW, the potential upside to the target price is 30.3%.

On the 18th, NH Investment stated, “The current stock price is only at 9.2 times the 2025 price-to-earnings ratio (PER) based on our estimates, making it highly attractive for investment.”

The firm added, “Despite some pressure from rising raw material costs, profitability is expected to be defended through price increases for related products.”

For November’s preliminary performance by region, in Korea, revenue and operating profit rose by 1% and 3% year-on-year, respectively, to 93.8 billion KRW and 16.4 billion KRW. While raw material cost pressures, such as cocoa, persisted, the company implemented price increases for the first time in about two years, which is expected to improve profitability.

In China, revenue and operating profit both increased by 21% year-on-year to 106.4 billion KRW and 21.2 billion KRW, respectively.

In Vietnam, revenue grew by 13% year-on-year to 60.1 billion KRW, while operating profit rose by 19% to 14.9 billion KRW. The research analyst noted that, similar to China, holiday product shipments are expected to sustain double-digit growth in the fourth quarter.

In Russia, revenue climbed by 29% year-on-year to 23 billion KRW, and operating profit grew by 30% to 4.3 billion KRW.
 

 

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