[Special Stock] Dongkook Pharmaceutical Up Over 4%... "Expectations for Growth and Profitability Improvement"

Dongkook Pharmaceutical's stock price is showing a rise of over 4% on the morning of the 25th. As of 11:15 AM, Dongkook Pharmaceutical is trading at 18,560 KRW per share, up 760 KRW (4.27%) from the previous day's closing price of 17,800 KRW on the KOSDAQ market.

Shinhan Investment Corp. said on the day, "It will catch both rabbits of growth and profitability improvement," raising Dongkook Pharmaceutical's target price from 20,000 KRW to 25,000 KRW.

Senior researcher Jaewon Jung of Shinhan Investment Corp. stated, "Dongkook Pharmaceutical's consolidated sales and operating profit for the fourth quarter of last year are estimated at 183 billion KRW and 19.5 billion KRW, respectively. These results meet market expectations," adding, "Annual sales and operating profit for this year are projected to be 802.5 billion KRW and 97.2 billion KRW. Existing business units such as OTC (over-the-counter drugs) and ETC (ethical drugs) are expected to grow steadily." Most of the new products scheduled for release this year are generics.

Senior researcher Jung analyzed, "Steady growth of existing business units is expected, and the possibility of issues related to selling and administrative expenses is considered low," adding, "The company's products have stably settled in the market, supported by the initial marketing effects."

The home beauty industry, where consumers manage their skin directly at home, is also growing rapidly. Dongkook Pharmaceutical's Madeca Prime, a mid-priced beauty device launched in May last year, has seen rapid sales growth since its release. Senior researcher Jung added, "Last year, Madeca Prime's sales are predicted to slightly exceed 20 billion KRW, and it is expected that the beauty device alone will achieve more than double growth this year."