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
? 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.

? 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.

? 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.

? 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
? 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.