Kolmar Korea stock gains on positive 2024 earnings forecast

[Courtesy of Kolmar Korea]

Shares of Kolmar Korea Co., a leading manufacturer of cosmetics and personal care products in South Korea, gained ground Wednesday on growing expectations for stable earnings across its businesses for next year.

Shares of Kolmar Korea were being traded at 54,800 won ($40.7) as of 10 a.m. on Wednesday, up 6 percent from the previous session.

“Kolmar Korea is expected to post 192.5 billion won in operating profit in 2024, up 26.5 percent from this year, on sales of 2.43 trillion won, up 11.3 percent,” said Kim Hye-mi, an analyst at Sangsangin Investment & Securities Co.

Kim noted that Kolmar Korea is expected to see steady growth in revenue, particularly as it expands references from local customers in China.

She also added that the company’s entire businesses are projected to achieve stable growth in earnings in 2024, with earnings improvement in its subsidiaries HK inno. N Corp. and Yonwoo Co.

Kim raised the stock’s target price to 75,000 won from 65,000 while maintaining a buy recommendation.