[Click eStock] "JW JoongWoe Pharmaceutical, Accelerating Profitability Improvement, Target Price Raised to 42,000 Won"

On the 18th, Korea Investment & Securities raised the target price of JW Jungwoo Pharmaceutical from 39,000 KRW to 42,000 KRW, a 7.7% increase, stating that both sales and operating profit are expected to meet consensus. The investment rating was maintained as Buy.

In a report on the same day, researcher Oh Eerim of Korea Investment & Securities analyzed, "Profitability improvement due to a decline in cost of goods sold ratio is expected to proceed more steeply than previously estimated," and added, "Additionally, the high-margin product Hemlibra is expected to achieve sales of 52.3 billion KRW in 2024, benefiting from its advantage as a subcutaneous injection formulation."

Korea Investment & Securities forecasted that JW Jungwoo Pharmaceutical's Q4 sales will reach 209.6 billion KRW and operating profit 27.5 billion KRW, meeting market expectations. Annual sales for this year are expected to be 829.3 billion KRW, with operating profit at 105.5 billion KRW.

Researcher Oh Eerim stated, "Since the second half of 2022, profitability has improved through internalization of major pharmaceutical raw material production," and predicted, "In 2024, the new total parenteral nutrition (TPN) product Winner F-Plus will be launched, and Hemlibra’s steady sales growth will continue."

Not only stable performance but also achievements in the research and development (R&D) sector are noteworthy.

Researcher Oh Eerim said, "Hair loss treatment JW0061 and targeted anticancer drug JW2286, developed using the proprietary AI platforms JWERLY and CLOVER, are expected to enter clinical trials in the first half of the year," adding, "It is significant that the development of drugs derived from the AI platform is beginning."