Certainly! Below is a transformed version of your document in a BULLINK portfolio style, incorporating appropriate examples and elements to enhance engagement and understanding for readers interested in stock and cryptocurrency investments.
Earnings Surprises Await: Kolmar Korea's 1Q25 Momentum Across Global Markets
Korea, China, and US: Surprising Upswings in 1Q25
Kolmar Korea has delivered a comprehensive financial triumph in the first quarter of 2025. The company's revenue soared to KRW 653.1 billion, a commendable 14% increase year-over-year, complemented by an impressive 85% leap in operating profit to KRW 59.9 billion. This strong performance was realized across key markets—Korea, China, and the US—driving the company’s robust growth and operating leverage.
Domestic Surge in Sun Care Market
In Korea, domestic sales escalated to KRW 274.3 billion, marking an 11% growth year-over-year. This uptrend was fueled by the burgeoning demand in sun care indie brands, which significantly outperformed the overall market, overshadowing the waning legacy brands. As we head into the peak sun care season, order books are swelling for key indie brands. We project further top-line strengthening as the market dynamics continue to shift—legacy brands, anticipated to fall to 10% market share from 40%, are giving way to rising indie brands. This shift has propelled the operating margin to an all-time high of 12.4% in Q1.
Unexpected Robustness in China
China's market, previously under pressure, showcased a surprising turnaround with sales hitting KRW 41.6 billion, a solid 20% year-over-year climb, while operating profit surged 72% to KRW 3.1 billion. The operating margin hit 7.5%. Last year's obstacles posed by pricing negotiations have been alleviated, clearing the path for renewed and potentially sustainable expansion in sun care orders.
US: A Continual Growth Story
The US segment triumphed with breathtaking sales growth of 210% to 21.7 billion won, alongside operating profits turning positive with a sequential 300 million won gain to 1.5 billion won, reflecting a 6.9% operating margin. This growth was largely driven by robust demand from key customers and securing new clientele in the base makeup category, setting the stage for sustained profitability.
Analyzing Earnings and Valuation
Kolmar Korea’s stock is buoyed by a combination of sun care momentum and favorable US market valuations. The peak season underpins robust domestic orders, promising record margins in Q2 2025. Additionally, the second US plant is on schedule for a June completion, paving the way for expanded production post-tariff adjustment—a strategic move that is sparking discussions with multiple brands for onshore production. Consequently, we’re elevating our 2025 US revenue forecast from KRW 80 billion to KRW 90 billion.
Our revised price target climbs to KRW 110,000 from KRW 92,000, factoring in elevated estimates of a 12.5% domestic operating margin in 2025 and higher industry valuation multiples. Currently, the stock trades at a modest 14x forward price-to-earnings ratio, offering an attractive buying opportunity.
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