[Click eStock] "Daewon Pharmaceutical, Strong in Respiratory... Steady Growth Expected in Second Half"

[Asia Economy Reporter Ji Yeon-jin] Ebest Investment & Securities announced on the 19th that Daewon Pharmaceutical is expected to deliver solid performance in the third quarter of this year, which is historically an off-season, as respiratory patients including COVID-19 cases may increase. The firm maintained a buy rating and a target price of 23,000 KRW.

Hana Kang, a researcher at Ebest Investment & Securities, stated, "Daewon Pharmaceutical is the only domestic pharmaceutical company that holds two products among the top 10 prescription drugs for respiratory diseases." She added, "Its strong core business, along with additional growth drivers such as Geukdong Etchipham (health supplements), the obesity treatment Glaceum L/I, and the hyperlipidemia treatment (DW4301), will play the biggest role in enhancing competitiveness."

Daewon Pharmaceutical's second-quarter performance this year showed sales of 117 billion KRW, up 33.5% year-on-year, and operating profit of 10.2 billion KRW, up 127.4%, meeting market expectations. Sales were similar to those in the first quarter of this year, but sales of prescription drugs related to COVID-19 and respiratory-related sales due to an increase in cold patients in the second half of this year may further increase, indicating a steady upward trend going forward.

Researcher Jo said, "Daewon Pharmaceutical, which is building a respiratory-based portfolio, is expected to have a relatively stable third quarter," adding, "With the increase in respiratory-related sales, the proportion of these sales is expected to recover to 21-23%, the level before COVID-19. The overall sales growth is driven by the simultaneous growth of the health supplement and OTC sectors, as well as the chronic disease-related portfolio."