1. Chairman Yoon’s Inspector Request: What’s the Issue?

The reason behind Chairman Yoon’s request remains unclear. Kolmar Holdings stated they haven’t received an official request, but this uncertainty itself can negatively impact investor sentiment. The content and outcome of the lawsuit will significantly influence Kolmar Holdings’ management and stock price.

2. Kolmar Holdings Under Pressure: Q1 Earnings Slump and Macroeconomic Uncertainty

Kolmar Holdings’ Q1 2025 earnings were disappointing. Sales in major business segments like cosmetics and health functional foods declined, leading to a sharp drop in operating and net profits. Adding to the challenges, macroeconomic conditions are unstable with US interest rate hikes and a slowdown in the Chinese economy. This situation further clouds Kolmar Holdings’ business outlook.

3. Kolmar Holdings Stock Forecast: Positive vs. Negative Scenarios

  • Positive Scenario: If the lawsuit is resolved smoothly and subsidiaries show positive results from new businesses, the stock price could recover. HK inno.N’s new drug development performance will be a key variable.
  • Negative Scenario: A prolonged lawsuit, increased management uncertainty, and worsening macroeconomic conditions could lead to a continued decline in stock price.

4. Investor Action Plan: Prudent Approach and Risk Management are Essential

Investing in Kolmar Holdings requires caution. Closely monitor the lawsuit’s progress, Q2 earnings announcements, and changes in macroeconomic indicators. Prepare for short-term stock price volatility. From a long-term perspective, focus on the subsidiaries’ competitiveness and new business performance.