[Hidden Market Picks] Interojo: Rosy outlook with growing overseas demand

2018.01.22 15:07:49 | 2018.01.25 11:30:11

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Interojo Co. (Kosdaq: 119610), South Korea’s No.2 contact lens maker, is expected to continue to see a robust growth in earnings on rising overseas demand for colored contact lenses.

The company’s operating profit for 2017 is estimated to have jumped 11.9 percent to 26.6 billion won ($24.9 million) from a year earlier on sales rising 14 percent to 84.5 billion won. Its operating profit for this year is projected to climb to 31.4 billion won and sales to 99.3 billion won, according to BNK Securities Co. on Monday.

The company has seen robust growth in Korea since 2014, led by growing demand for cosmetic contact lenses such as colored lens and became the country’s No.2 single-use contact lens seller in 2016. Last year, it upped its marketing efforts overseas to further bolster its sales and succeeded to secure more orders from existing clients in Germany and Italy while winning new accounts in the United Kingdom and France. Also, it is rapidly expanding its presence in the Middle East.

The company has also launched beauty lens for astigmatism for the first time in Korea, helping it maintain its lead in the local beauty contact lens market that has evolved to offer wider product groups with more advanced functions such as multifocal lens for people with presbyopia.

The company has recently started selling frequent replacement lens and their shipments to overseas, especially to Europe, the Middle East, and Japan, are expected to grow rapidly this year.

BNK Securities on Monday upped its price target for Interojo to 56,000 won from 54,000 won.

Interojo shares have jumped 20.2 percent in January from the end of 2017 on the firm’s announcement of generous dividend payout. Shares of Interojo ended Monday 2.36 percent higher at 47,800 won apiece.

For more information, please contact Choi Jong-kyung, analyst at BNK Securities, by phone at 82-2-3215-1575 or email at choijk@bnkfn.co.kr.

You can also visit Financial Supervisory Service (http://englishdart.fss.or.kr/) for company details and latest quarterly report (search code: INTEROJO or 119610). For latest trading data, please visit Korea Exchange (http://englishdart.fss.or.kr/) and search under INTEROJO or 119610.

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