Sangsangin Investment & Securities evaluated that Kolmar BNH's stock price is rebounding amid a performance turnaround and governance controversy on the 22nd. Sangsangin Investment & Securities maintained a 'buy' recommendation and a target price of 20,000 won for Kolmar BNH, which is 42.6% higher than the previous day's closing price of 14,030 won.
Kim Hye-mi, a researcher at Sangsangin Investment & Securities, noted that there are two main reasons for Kolmar BNH's stock price recently hitting a bottom and rebounding. First, they disclosed their performance for the first quarter of this year along with the monthly performance for April, showing significant growth in both sales and operating profit compared to the previous year.
The other issue is the governance structure, as the largest shareholder, Kolmar Holdings, filed a lawsuit seeking approval for a special shareholders' meeting to appoint internal directors. Researcher Kim said, "The market interprets that a significant measure to overcome long-term poor performance is imminent, regardless of this outcome."
Kolmar BNH's consolidated revenue for the first quarter (January to March) of this year was 136.7 billion won, and operating profit was 3.6 billion won, representing decreases of 15% and 63%, respectively, compared to the same period last year. Both the food and cosmetics sectors showed negative growth.
Researcher Kim predicted a turnaround in the second quarter of this year. He stated, "Sales of food products to our largest client have been recovering since March, and the cosmetics sector has also entered its seasonal peak," adding, "With the full-scale operation of the Sejong Factory 3, expenses such as depreciation costs will also ease."