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Investing.com - JPMorgan downgraded Kolmar Korea Co Ltd (KS:161890) stock rating from Overweight to Neutral on Wednesday, while significantly reducing its price target to KRW90,000 from KRW140,000.
The rating change follows Kolmar Korea’s second-quarter 2025 operating profit missing JPMorgan’s estimates by 15%, primarily due to underperforming overseas subsidiaries and weak domestic margins resulting from employee bonus-related provisions.
JPMorgan cited ongoing challenges in Kolmar’s U.S. and Chinese operations, alongside decelerating growth momentum at its domestic plant due to weaker orders from existing customers as reasons for the downgrade.
The investment bank has lowered its 2025-2026 operating profit estimates for Kolmar Korea by 7% and 4% respectively, while reducing its 2026 price-to-earnings multiple from 22x to 15x.
JPMorgan also noted that Kolmar Korea expects higher sales contribution from color orders in domestic plants, which could lead to declining operating profit margins in coming years.
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