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.