Orion, 4Q16 operating profit beat consensus profitability management - Kiwoom

[Korea hyerin nine financial newspaper reporter] was assessed that Kiwoom 17 days exceeded last year's fourth quarter, the market consensus estimate of Orion. This recommendation is made BUY, TP maintains 78 million.

4Q11 operating profit of Orion was 85 billion won higher than the market consensus by about 12%.

Kiwoom Park, Sang - June researcher (4Q operating profit) and due to reversal of effect Allowance for doubtful accounts (23 million) due to improved labor costs 16 billion won loss, accounts receivable recoveries in accordance with the China Incentive collapse 'said,' positive part of the administrative costs went into improving profitability, Vietnam and Russia was sustained top-line growth through, he said that domestic sales turned to growth.

On the other hand, the negative part is added that 'China sales growth slow and the recovery is sluggish this point in the gum category continues in the Chinese market. "

On the other hand, the Orion year earnings growth was mainly expected to Vietnam than China and Russia.

Researchers Night "China is difficult to expect the trend of revenue growth beyond new products, lower won / yuan exchange rate is required to taxing the first half of the year

Of 'saying,' he explained in Vietnam and the Russian region continued top-line growth and margin improvement around the pie categories are determined by regions, which can grow in the future growth potential. "

In addition, he "weak China sales growth is somewhat unfortunate part, top-line growth of the tight margin management and the Vietnam / Russia is determined to be a positive part, it said," This year, the, focus on whether a stable profit growth is possible, rather than valuations rise there is a need to adapt 'he said.





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