On the 21st, Hana Financial Investment lowered its target price to 50,000 won for Kolmar BNH, saying that the negative impact from the COVID-19 is inevitable. The investment opinion remained 'buy'.
Third-quarter earnings are expected to be sluggish. Consolidated sales and operating profit are expected to rise 3.6% on-year to KRW 151.5 billion and 3.1% to KRW 23.8 billion (YoY 3.1%), respectively.
"With the implementation of the "fourth phase of social distancing," a negative impact will be inevitable in the third quarter," Hana Financial Investment said. "Not only Korea but also major exporters such as China may have been restricted by business activities due to COVID-19.".
The small number of business days due to the Chuseok holiday is also expected to weigh on earnings. As a result, consolidated sales this year rose 5.6% year-on-year to 641 billion won and operating profit fell 3.6% to 105.3 billion won.
"We are under considerable restrictions on business activities due to the strong social distance by the end of this year," Hana Financial Investment said. "This year's performance will have to be lowered due to the negative external environment.". However, if With Corona begins in earnest next month, Kolmar BNH's business activities are expected to gain momentum.
Hana Financial Investment added, "Next year is positive because we can expect significant growth due to the resumption of business activities.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
