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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Korea Investment & Securities analyzed on Tuesday that Orion is likely to report Q4 earnings in line with market expectations and maintained its "Buy" rating and a target price of 130,000 KRW.
Korea Investment & Securities stated, "Orion's Q4 2023 revenue is expected to reach 846.7 billion KRW, up 10.5% year-on-year, with an operating profit of 161.5 billion KRW, up 14.8%, meeting market expectations." The report highlighted that exports to the U.S. expanded, and revenue also grew in Vietnam and Russia.
In the case of China, the sales gap seen since October 2023 has reportedly been resolved. "With the shipment of products for the Lunar New Year beginning, November saw a double-digit increase in shipments to small and medium-sized distributors," the analyst explained. He also predicted that "profitability will gradually improve going forward."
Analyst Kang noted that Orion has sufficient momentum. In response to the surge in cocoa prices, Orion was the first to raise prices in the domestic market. In December 2023, the company increased the prices of 13 chocolate-based products, including "Choco Songi" and "Digest Choco," by an average of 10.6%. These products account for up to 30% of Orion's domestic sales revenue.
Korea Investment & Securities added, "Price increases are also being considered in other countries," and emphasized, "There are many growth drivers to look forward to, including the launch of new cost-effective products and the expansion of production facilities in Vietnam and Russia."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
