Asia300

Orion Corp. (Korea)

South Korea

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May 23, 2017
Prev close: 754,000
May 23, 2017
Market cap:
Market cap(USD):
4,530.36B
4,030.21M
Shares: 6.00M

Currency in KRW

Company profile

Market(Ticker): KRX(001800)
Sector:
Industry:
Consumer Non-Durables
Food: Specialty/Candy
Full time employees: --

Business summary

Orion Corp. (Korea) engages in the manufacture and sale of confectionery products. It operates through the following businesses: Confectionery, Entertainment and Sports. The Confectionery business offers products such as pies, snacks, biscuits, candies, jellies, gums, chocolates through its brand names of Market O and Dr. You. The Entertainment business produces, invests and distributes films. The Sports business supports sports development by using public funds raised through the Korean lottery, Sports ToTo. The company was founded by Lee Yang-Gu on July 25, 1956 and is headquartered in Seoul, South Korea.

Company background

Orion is one of South Korea's largest confectioners, alongside Lotte Confectionery. It sells more overseas than it does in its home market. Best known for its Choco Pie cakes and Pokachip potato chips, the company has diversified its product line in recent years.

Founded as the Tong Yang Confectionery in 1956, the company expanded through acquisitions. Its success was built on the Orion Choco Pie, introduced in 1974. The hit product brought a surge in sales and domestic market share, and in 2003 the company changed its name to capitalize on the strength of its pies.

Among its four key products -- pies, savory snacks, jelly snacks and cookies -- savory snacks and cookies have grown in importance in recent years. The company has expanded into China, Vietnam and Russia and has factories in all three countries. Orion's overseas sales now exceed 1 trillion won annually.

In addition to its snacks business, Orion has operations in entertainment and lotteries, but the company will withdraw from the lottery business this year to focus on confectioneries.

In July, Orion signed a memorandum of understanding with the Everland theme park in Yongin, Gyeonggi Province, on the outskirts of Seoul. The two will jointly market and operate the attraction, which is based on the concept of a fairy tale candy house.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 2,386.26B
Gross profit 1,130.10B
Operating income 326,247.60M
Income before tax 305,783.48M
Net income 219,932.37M
EBITDA 487,001.89M
Diluted EPS 44,958
Dividends per share 6,000
Total assets 2,908.86B
Total liabilities 1,203.96B
Total equity 1,599.52B
Operating cash flow 338,867.93M

Currency in KRW

Revenue 2,056.79M
Gross profit 974.07M
Operating income 281.20M
Income before tax 263.56M
Net income 189.56M
EBITDA 419.76M
Diluted EPS 38.75
Dividends per share 5.17
Total assets 2,408.39M
Total liabilities 996.82M
Total equity 1,324.32M
Operating cash flow 292.07M

Currency in USD

Valuation measures

Dec 2016

PER 14.56
ROA 7.44%
ROE 14.76%
Operating margin 13.67%
Profit margin 9.21%

Key executive

  • President, Chief Executive Officer & Director: Kyung-Jae Lee
  • Executive Director & Head-Finance: Seong-Gyu Park
  • Executive Director & Head-Research Institute: Seung-Joon Lee
  • Director, Vice President & Head-Production: Kyu-Hong Lee
  • Vice Chairman-Executive Board: Hwa-Kyung Lee

Share holders

  • LEE HWA-KYUNG(14.5%)
  • TAM CHEOL-GON(12.8%)
  • Orion Corp. (Korea)(12.0%)
  • National Pension Service of Korea(7.0%)
  • GIC Pte Ltd. (Investment Management)(5.0%)
  • Westwood Global Investments LLC(5.0%)
  • Matthews International Capital Management LLC(3.9%)
  • Arisaig Partners (Asia) Pte Ltd.(2.2%)
  • The Vanguard Group, Inc.(1.4%)
  • BlackRock Fund Advisors(1.1%)

Address

  • Website: http://www.orionworld.com
  • Address: 13 Baekbeom-ro 90da-gil, Yongsan-gu, Seoul, 04369, South Korea
  • Phone: +82.2.710.6000

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