[Click eStock] "Pharmsville Expected to Show Significant External Growth"

Hana Financial Investment Issues 'Buy' Rating and Target Price of 20,700 Won... Closing Price on 17th at 13,850 Won

[Asia Economy Reporter Kum Boryeong] There is anticipation that Farmsville will continue its high growth this year as well.

According to Hana Financial Investment on the 18th, Farmsville's performance last year recorded sales of 29.9 billion KRW and operating profit of 7.5 billion KRW, representing increases of 51.8% and 34.9% respectively compared to the previous year.

This year, even greater external growth is expected. First, the company has the advantage of excellent product sourcing capabilities. Every year, it strives to expand its brands across categories such as diet, joints, skin, eyes, and immunity. Currently, it owns 11 in-house brands and over 150 product lines. Sales are not concentrated on specific products, indicating a high possibility of stable external growth.

Kim Ahyoung, a researcher at Hana Financial Investment, explained, "The key executives come from CJ Healthcare's marketing team and possess outstanding distribution strategies. Currently, there are three home shopping channels in operation, with plans to expand to seven within the year." She added, "Sales growth through entry into various forms of offline stores is expected, and the acquisition of shares in Fly Gangwon last December is interpreted as an extension of this strategy."

Hana Financial Investment forecasts Farmsville's sales this year to be 52.6 billion KRW and operating profit to be 12.7 billion KRW. Researcher Kim analyzed, "External growth is expected to be prominent due to an increase in home shopping broadcasts and expanded sales to offline stores including duty-free shops. Currently, discussions are underway for 3 to 4 duty-free shops, and some may launch as early as the first quarter." She further noted, "Additionally, production capacity (capa) has been secured for direct manufacturing of some products, with operations expected to begin from March."

Hana Financial Investment gave Farmsville a 'Buy' investment rating with a target price of 20,700 KRW. The closing price on the 17th was 13,850 KRW.