Corporate Logo(source: kolmar.co.kr)
Kiwoom Securities reaffirmed its “Buy” rating and 90,000 won target price on Korea Kolmar (161890) on April 15, highlighting expectations for sustained earnings growth supported by robust global performance.
The brokerage projected Korea Kolmar’s operating profit for the first quarter of 2025 at 51.7 billion won, up 5% from the same period in 2024, with revenue estimated to rise 11% year-on-year to 645 billion won. The results are expected to slightly exceed market consensus, driven by strong performances from both domestic and U.S. subsidiaries.
Domestically, continued export growth by client companies is expected to lead to increases in both revenue and operating profit for the Korea-based operations. In the U.S., not only are orders from major clients holding steady, but a surge in new client acquisitions is expected to drive further growth. In contrast, order recovery is underway in China among local clients, while order volumes from major global clients in Canada are likely to decline.
Kiwoom Securities assessed the domestic market as remaining fundamentally sound and forecasted continued full-year earnings growth following a solid first quarter.
Among overseas subsidiaries, the U.S. unit was singled out as a key growth driver. With new client inflows gaining momentum in addition to existing contracts, the firm is positioned for a strong performance through at least the second quarter.
The report also noted that the completion of Korea Kolmar’s second U.S. factory in the second half of 2025 will make the ability to secure sufficient revenue to offset fixed costs a critical factor for profitability.
Cho So-jung, an analyst at Kiwoom Securities, stated, “Given the ongoing tariff-related issues and the implementation of MOCRA (Modernization of Cosmetics Regulation Act), the long-term growth potential of the U.S. factory is clearly positive. We expect stability in the domestic business and a meaningful rebound in the U.S. to unfold going forward.”
*[KOSPI]Kolmar Korea(161890) was spun off from Kolmar Korea in October 2012 and engages in cosmetics ODM, pharmaceutical CMO, and HB&B businesses. As the pioneer in the domestic cosmetics industry to establish the ODM model, it has secured its position as a leading company. Market capitalization stands at 1.73 trillion won (as of April 14, 2025, closing price).
Corporate Logo(source: kolmar.co.kr)
Kiwoom Securities reaffirmed its “Buy” rating and 90,000 won target price on Korea Kolmar (161890) on April 15, highlighting expectations for sustained earnings growth supported by robust global performance.
The brokerage projected Korea Kolmar’s operating profit for the first quarter of 2025 at 51.7 billion won, up 5% from the same period in 2024, with revenue estimated to rise 11% year-on-year to 645 billion won. The results are expected to slightly exceed market consensus, driven by strong performances from both domestic and U.S. subsidiaries.
Domestically, continued export growth by client companies is expected to lead to increases in both revenue and operating profit for the Korea-based operations. In the U.S., not only are orders from major clients holding steady, but a surge in new client acquisitions is expected to drive further growth. In contrast, order recovery is underway in China among local clients, while order volumes from major global clients in Canada are likely to decline.
Kiwoom Securities assessed the domestic market as remaining fundamentally sound and forecasted continued full-year earnings growth following a solid first quarter.
Among overseas subsidiaries, the U.S. unit was singled out as a key growth driver. With new client inflows gaining momentum in addition to existing contracts, the firm is positioned for a strong performance through at least the second quarter.
The report also noted that the completion of Korea Kolmar’s second U.S. factory in the second half of 2025 will make the ability to secure sufficient revenue to offset fixed costs a critical factor for profitability.
Cho So-jung, an analyst at Kiwoom Securities, stated, “Given the ongoing tariff-related issues and the implementation of MOCRA (Modernization of Cosmetics Regulation Act), the long-term growth potential of the U.S. factory is clearly positive. We expect stability in the domestic business and a meaningful rebound in the U.S. to unfold going forward.”
*[KOSPI]Kolmar Korea(161890) was spun off from Kolmar Korea in October 2012 and engages in cosmetics ODM, pharmaceutical CMO, and HB&B businesses. As the pioneer in the domestic cosmetics industry to establish the ODM model, it has secured its position as a leading company. Market capitalization stands at 1.73 trillion won (as of April 14, 2025, closing price).