[Alpha Biz= Paul Lee] Seoul, September 17, 2025 — Shinhan Investment & Securities announced on the 17th that Orion (KQ: 271560) is expected to see stronger sales growth and share price recovery in the second half of the year, supported by enhanced product and channel competitiveness. The brokerage maintained its “Buy” rating and target price of KRW 140,000.



According to analyst Cho Sang-hoon, Orion’s August year-over-year sales performance by market was: Korea +1.1%, China +4.1%, Russia +37.3%, and Vietnam –4.9%. While cost pressures persist, operating profit trends have diverged by region depending on sales dynamics.



In Korea, an additional KRW 5 billion in costs related to product recalls and inventory disposals was recorded, following similar measures in July. In China, weak domestic consumption and store closures among discount and TT channel retailers weighed on performance, though high-growth channels continued to expand.



“Despite higher raw material costs and promotional expenses for new channel placements, increased production volumes delivered a leverage effect that kept the cost-to-sales ratio in line with last year,” Cho explained. “With continued efforts to streamline SG&A, operating margins have risen for two consecutive months.”



Looking ahead, Cho highlighted Orion’s proactive strategies to counter sluggish consumption, including expansion into fast-growing channels, launching channel-specific and seasonal products, and strengthening its product lineup.



Valuation remains attractive, the analyst added: “The stock is currently undervalued. With new product launches, channel expansion, rising market share, and visible progress in regional expansion, Orion has the potential to re-rate into a premium valuation range.”

 

 

 

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