Orion, China Business sluggish decline in 1Q11 -NH Securities

[Goyounghun financial newspaper reporter Korea] NH Investment & Securities is the 19th kept the 1Q11 earnings are expected to decline doendamyeo Rating Target price 710,000 won on neutral sluggish business in China for Orion.

Korea Hee NH Investment & Securities researcher "is estimated to reverse kidney width of the Chinese confectionery business is greater than expected, it appears the Korea brand boycott movement in March," he said "first quarter consolidated sales and operating profit of Orion 573 billion won and 905, respectively billion won was diagnosed to be below the market consensus significantly. "

One researcher said, "sluggish Chinese confectionery business is a major cause of poor performance compared to the previous year early gotta Lunar New Year is the related demand seonbanyoung in the fourth quarter caused sales space" "Since March, China in the first quarter as sales setback of the Korea brand boycott movement He explained that poor performance is also a major cause lasting structural downturn of the Chinese confectionery market. "

He added, "Because of Orion's valuation and share price movements are becoming long-term closely connected with the performance of the business in China to the earnings recovery is necessary confidence in the long-term growth potential of the business in China," said "transient performance related to the Lunar New Year demand and Saad retaliation sluggish analyzed that can be nothing but a short-term issue. "

Also it predicts that Orion is also difficult to find a performance that exceeds the industry average amid the ongoing downturn in the overall Chinese confectionery market.



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