[Click eStock] "T&L, Acne Patch Sales Growth Expected"

Sangsangin Securities analyzed on the 20th that T&L's acne patch Trouble Care sales will rapidly increase. They maintained a 'Buy' investment rating and a target price of 78,000 KRW.

T&L is a company specializing in wound treatment products. Its main product is the Trouble Care (acne) patch. So Jung Lee, a researcher at Sangsangin Securities, stated, "Starting this year, Trouble Care exports are estimated to increase by about 25 billion KRW compared to the previous year as it was launched in the offline distribution network of C&D, a major customer in the US and Europe." He explained, "Since it has only been launched in 10-20% of C&D's distribution network, if it is launched throughout the network, additional sales exceeding 100 billion KRW are possible." He added, "As the sales for 2023 are expected to be about 120 billion KRW, there is a high possibility that sales will eventually double."

Sangsangin Securities expects that as T&L's distribution network expands, sales will also increase rapidly. He said, "If launched throughout the distribution network, considering the growth in the initial markets of the US and Europe, annual sales could increase by around 30 billion KRW, making the 2027 sales approximately 250 billion KRW, operating profit 90 billion KRW, and net income 70 billion KRW." He evaluated, "Including new customer acquisitions and new businesses such as microneedle pharmaceuticals, the estimates could be even higher."

He noted, "For the fourth quarter of this year, sales and operating profit are expected to slightly decrease compared to the previous quarter, and due to a high-low trend, the stock price has been sluggish," but added, "Starting from the first quarter of next year, it is expected to enter a full-scale restocking phase, so proactive revaluation is anticipated from the end of the fourth quarter this year." He further added, "It is necessary to pay attention to the annual performance growth trend, and in the short term, the turnaround point for orders is not far away."