NH Investment & Securities expects Orion's earnings momentum to be highlighted after the third quarter.
The investment opinion is to maintain 'buy' and the target price is 175,000 won.
"The third-quarter operating profit rose 6% year-on-year, slightly exceeding the consensus," NH Investment & Securities said on the 11th.
"Amid the solid trend of improving the performance of Chinese and domestic subsidiaries in the future, the high growth of Vietnamese and Russian subsidiaries will be highlighted.".
Orion's consolidated earnings in the third quarter rose 4.7 percent on-year to 625.3 billion won and 5.9 percent to 114.2 billion won, respectively.
The Chinese subsidiary posted KRW 69.6 billion, up 4.3% from KRW 319.6 billion and 19.0%, respectively.
"Following the normalization of sales of Chinese subsidiaries, the reversal of consolidated earnings will begin in earnest after the third quarter," NH Investment & Securities said. "Although it was difficult for the Vietnamese subsidiary to engage in business activities due to the strong regional blockade, the sales growth rate will recover from the fourth quarter due to the recent resumption of external activities.".
NH Investment & Securities added, "The Russian subsidiary will grow rapidly by meeting the growing demand through CAPA expansion while profitability improves due to the effect of price hikes and the rebound of rubles.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
