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(Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] On Orion's first-quarter earnings this year, Hi Investment & Securities said its external growth was solid despite the worsening economy and sluggish consumption in the entire region.
Orion's combined sales and operating profit of the four major corporations in the first quarter rose 12.2 percent and 24.8 percent, respectively, from a year earlier.
Regarding Orion's Korean business, Hi Investment & Securities said, "The growth rate is solid despite falling domestic consumption, and the trend of increasing production and reducing manufacturing cost burden are leading to stable margin levels."
Regarding the Chinese business, he said, "Expectations through major brands' supply strategies are valid," adding, "We expect high growth and profit improvement this year, including the main production of additional lines completed at the end of last year."
The Vietnamese business said, "If the volume of major products with relatively high margin levels grows, additional leverage effects may be expected."
In the case of Russia, it is expected that mid- to long-term high growth will be possible due to product portfolio diversification and line expansion effects.
Hi Investment & Securities also positively assessed the previous day's announcement to increase its dividend payout ratio to more than 20% over the next three years.
Investment opinion and target stock price of Orion remained 'buy' and 160,000 won, respectively.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
