Hana Securities raises Korea Kolmar target price to 140,000 won

Hana Securities raised its target price for Korea Kolmar (KOSPI: 161890) from 110,000 won to 140,000 won on July 7th, reaffirming its Buy recommendation.

Analyst Park Jong-dae estimates that Korea Kolmar's consolidated revenue and operating profit for the second quarter will reach 831.5bn won and 94.4bn won respectively, representing year-on-year growth of 14% and 28%. Domestic operations are expected to lead the recovery, with sales rising 25% from a year earlier.

By division, revenue from China is forecast to grow 15% year-on-year, signalling stabilisation. The company's subsidiary Yeonwoo is expected to swing to an operating profit of 2.1bn won, returning to the black. North America, however, remains a drag, with an operating loss of 4.3bn won anticipated.

The outlook for the second half of the year is encouraging. The order backlog entering the third quarter exceeds that of the second, and capacity utilisation has surpassed 90%. A new factory in Sejong is scheduled for completion in July 2027, steadily expanding production capacity.

With 90% of the company's sunscreen exports destined for Europe, continued expansion into new regions and distribution channels is expected to sustain growth momentum through the remainder of the year. Indie brands — smaller, independent beauty labels that have become an increasingly important growth driver — now account for more than 50% of sales, while the combined share of the two largest domestic cosmetics conglomerates has fallen to just 11%.

Also noteworthy is the prospect of a repeat order from global luxury brand "R", following an initial shipment in the first quarter that has drawn positive consumer responses. Negotiations over new products are also reportedly under way with luxury group "L".

Hana Securities projects full-year 2026 revenue and operating profit of 3.0455tn won and 304.1bn won respectively. The 140,000 won target price is derived by applying a forward price-to-earnings multiple of 17 times over a 12-month horizon. Korea Kolmar's shares were trading at 116,300 won as of July 6th.