[EQUITIES] ‘Orion’s Chinese operations turn to red’
[THE INVESTOR] Orion’s Chinese branch will turn to red in the second quarter, said KB Investment and Securities on July 17, suggesting a “hold” recommendation and 80,000 won (US$70.89) target price.
The confectionery company’s revenue in the period will drop 23.8 percent to 377.1 billion won and operating profit by 59.4 percent to 11.5 billion won from the previous year, as its business in China stumbles, said analyst Park Ae-ran.
The Chinese branch’s revenue in the second quarter will be slashed by half to 138.5 billion won and operating loss will reach 12.5 billion won, as it deals with the THAAD aftermath and bears the fixed costs, noted the analyst.
The firm’s corporate value is estimated at 3.14 trillion won and Orion Holdings is worth 701.8 billion won, added Park.
By Hwang You-mee (email@example.com)