[Click eStock] "Pharmaresearch, Continued Growth in Medical Devices and Cosmetics This Year... Effective Low-Price Buying"

[Asia Economy Reporter Hwang Yoon-joo] KB Securities analyzed on the 30th that although Pharmaresearch's stock price declined due to concerns over profitability deterioration caused by the China lockdown impact and increased costs in the first half of the year, the export growth of Rejuran/Conjuran remains stable. Accordingly, they maintained a 'Buy' investment rating and a target price of 100,000 KRW.

Han Yoo-geon, a researcher at KB Securities, stated, "This year's expected sales are projected to increase by 19.7% year-on-year to 184.4 billion KRW, operating profit is expected to rise by 20.4% to 63.2 billion KRW, and net income attributable to controlling shareholders is forecasted to increase by 5.6% to 49.3 billion KRW."

In the first quarter of this year, sales across all business sectors including pharmaceuticals, medical devices, and cosmetics slightly increased compared to the previous quarter. Researcher Han predicted that the growth trend in the medical device and cosmetics sectors will continue throughout this year.

Researcher Han forecasted, "Domestic sales and export growth of Rejuran and Conjuran are steadily continuing, and the core business unit, medical devices, is expected to achieve 89 billion KRW this year."

He also analyzed, "In the second half of the year, consumptive expenses such as corporate tax and advertising costs will decrease," adding, "It is judged that a stable flow will be maintained at the profit level."

Domestic approval for Lientox is expected to be finalized as early as July. Researcher Han diagnosed, "Actual sales will take place in 2023," and "The expected sales from Lientox are about 10 billion KRW, which is likely to follow a similar trend to the early toxin sales of Humedix Co., Ltd."