[Asia Economy Reporter Park Jihwan] NH Investment & Securities evaluated on the 19th that Hugel continues to maintain solid domestic sales following the second quarter this year, and expects improved third-quarter performance due to a recovery in high-profitability exports. Accordingly, they issued a 'Buy' investment rating and raised the target price from the previous 203,000 KRW to 230,000 KRW.
Researcher Na Gwanjun of NH Investment & Securities explained, "It was confirmed that Toxin Letivo was excluded from the approval review list of China's CDE (Center for Drug Evaluation) on the 15th," adding, "The review result for Toxin Letivo has been transferred from China's CDE to the NMPA (National Medical Products Administration), indicating a high possibility of approval in China."
He analyzed, "The operating value was calculated at 1.6517 trillion KRW, and by adding the pipeline value of Toxin 'Letivo' at 1.2224 trillion KRW, the total corporate value was estimated at 2.874 trillion KRW," further stating, "The market share of Toxin Letivo in China’s largest market increased from 15% to 25%, and the pipeline value (previously 821.5 billion KRW) was also revised upward."
The steady domestic sales and export recovery centered on Asia were also evaluated positively. Researcher Na said, "The consolidated sales for the third quarter reached 53.6 billion KRW, and operating profit was 18.8 billion KRW, increasing by 4.8% and 3.2% year-on-year, respectively," and added, "Following the second quarter, solid domestic sales continued into the third quarter, and performance improvement is expected due to the recovery of high-profitability exports."
He emphasized, "Although sales decreased in the duty-free channel, which was the main sales channel, due to the impact of COVID-19, gradual recovery of cosmetics sales is expected with the commencement of sales through the Chinese wholesale channel."
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