[Click eStock] Dongkook Pharmaceutical Forecasts Record High Performance Since Establishment

Balanced Growth Expected Across All Business Divisions Including Pharmaceuticals and Cosmetics
'Madeca Cream' Also Effective in Expanding Sales Channels Such as Olive Young

Dongkook Pharmaceutical 'Insadol Plus'

[Asia Economy Reporter Minwoo Lee] Dongkook Pharmaceutical is expected to achieve its highest performance since its founding this year. All business sectors, including prescription drugs and over-the-counter drugs, are growing steadily, and the diversification of cosmetic sales channels is anticipated to result in 'record-breaking' achievements.

On the 20th, NH Investment & Securities estimated that Dongkook Pharmaceutical would record sales of 128.6 billion KRW and operating profit of 20.1 billion KRW in the fourth quarter of last year. Compared to the same period last year, sales are expected to increase by 26.5% and operating profit by 57.2%, achieving the highest performance ever.

Researcher Koo Wan-sung of NH Investment & Securities explained, "Steady growth in all business sectors, including prescription drugs (ETC), over-the-counter drugs (OTC), and healthcare (cosmetics, health supplements, etc.), is sustaining solid performance growth. High growth is expected due to the expansion of cosmetic raw material and ETC factories and diversification of cosmetic channels."

Sales and operating profit for this year are projected at 556.3 billion KRW and 82 billion KRW, respectively. Sales are expected to increase by 15.1% and operating profit by 21% compared to last year. In particular, the sales growth of Madeca Cream is expected to be remarkable. Since last month, it has started selling at 200 Olive Young stores, and the diversification of channels following home shopping is expected to be effective. Sales this year are expected to reach 97 billion KRW, a 19.2% increase from last year. Researcher Koo said, "By expanding the ETC line, the company plans to increase its own production items and prepare for changes in the joint bioequivalence prohibition environment. Meanwhile, the healthcare sector plans to expand the collagen product line and extend to body shampoo after toothpaste. The selling and administrative expense ratio is expected to be maintained at around 46.1% due to marketing cost control."

NH Investment & Securities gave Dongkook Pharmaceutical a 'Buy' investment opinion with a target price of 115,000 KRW. The closing price on the previous trading day was 100,000 KRW.