[Click eStock] "T&L, Rapid Growth in Overseas Sales... Significant Potential for Stock Price Increase"

[Asia Economy Reporter Ji Yeon-jin] Shinhan Financial Investment announced on the 5th that it has given a buy rating and a target price of 98,000 KRW for T&L, reflecting expectations for overseas sales growth of trouble care patches and new product launches. This is 63% higher than the current stock price.

T&L is a leading domestic wound dressing company that went public in November last year. Its main product lines include wound dressings, orthopedic fixatives, and high-performance materials. Wound dressings are medical devices designed to protect wounds, prevent contamination, absorb exudate, and prevent bleeding or loss of bodily fluids. Recently, the company has expanded its market with trouble care (such as acne) based on hydrocolloid wound dressings.

Since 2018, T&L has entered the U.S. trouble care market in the form of ODM (Original Design Manufacturing). In particular, the high sales growth of trouble care patches supplied through ODM stands out. The company entered the U.S. market through Hero Cosmetics starting in 2018, and recently, sales have begun to increase significantly as it entered major channels such as Amazon.com, CVS, and Target.

The hydrocolloid sales, which were 9.5 billion KRW in 2018, increased to 21.1 billion KRW in 2020 along with the expansion of overseas sales proportion. It is expected to grow rapidly to 36 billion KRW in 2021.

This year, results from new businesses are also expected to become visible. The launch of smart patches and microneedle-based cosmetics is anticipated. In the mid to long term, expansion into transdermal drug delivery systems (TDDS) such as fillers is also expected.

Won Jae-hee, a researcher at Shinhan Financial Investment, said, "The launch of new products is not only positive in terms of performance but is also expected to act as a valuation premium as the company leaps forward as a wearable platform company. Considering the overseas order backlog, overseas sales exceeding current estimates are expected, and since a valuation premium due to entry into new businesses is also possible, a stock price increase beyond the target price is achievable."