[THE INVESTOR] Kolmar Korea’s earnings will recover in third quarter but only partially, said NH Investment and Securities on Sept. 13, lowering the target price to 74,000 won (US$65.68) from 84,000 won.

Its revenue and operating profit will slightly improve to 188.6 billion won and 16.2 billion won, respectively, as the pharmaceutical division’s sales will increase 17 percent boosted by strong domestic sales of generic drugs, explained analyst Han Guk-heui.

Meanwhile cosmetics sales will only manage to climb up 2 percent as demand from Chinese tourists declines sharply and exports will continue to slide, noted the analyst. 

Its growth in Beijing has slowed down, with 11 percent sales growth rate in second quarter, and will need time to recover, said Han.

The ODM manufacturer, however, remains relatively attractive in the cosmetics sector, added the analyst, maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)