Orion Corp (KS:271560) faced weaker sales in China in January, attributed to the timing of the Lunar New Year (LNY), while Vietnam and Russia posted strong growth. The company’s stock closed 1.75% lower in Korea trading Tuesday.
Key Regional Performance Highlights
\ud83d\udcc9 China: Lunar New Year Impact Hits Sales
- Sales fell 11% YoY in KRW (18% in RMB) due to holiday timing.
- November 2024–February 2025 sales are still expected to show mid-single-digit growth.
- Operating margin declined 140 bps due to slower production and rising costs.
\ud83d\udcca Korea: Modest Growth Despite Price Hikes
- Revenue up 1% YoY, with underlying sales rising 2% YoY.
- Price increases reduced sales growth by ~3%, as traditional demand remained slow.
\ud83d\ude80 Vietnam: Strong Momentum Continues
- Sales rose 13% YoY in KRW (7% in VND) despite the Tet holiday impact.
- Underlying growth exceeded 10%, showing resilient demand.
\ud83d\udd25 Russia: Standout Market with Surging Sales
- Revenue soared 36% in KRW (41% in RUB), supported by strong demand.
- High utilization rate (120%) may lead to capacity expansion in Q3 2025.
Cost Pressures and Market Outlook
\ud83d\udccc Rising input costs affected margins:
- China: +4 ppt in production costs.
- Vietnam: +1 ppt.
- Russia: +5 ppt.
Despite short-term pressures in China, Orion’s Vietnam and Russia operations remain strong, and the company’s long-term outlook suggests steady growth into 2025.
