[Click eStock] "Neopharm, Domestic and International Growth Expected This Year"

Yuanta Securities analyzed on the 6th that Neopharm is expected to grow domestically and internationally this year. No investment opinion or target price was provided.

Neopharm recorded sales of 27.2 billion KRW and operating profit of 6.9 billion KRW in the fourth quarter of last year. This represents increases of 21.7% and 15.4%, respectively, compared to the same period the previous year. Seung Eun Lee, a researcher at Yuanta Securities, explained, "The increase in sales of major brands due to year-end promotional events and increased exports to countries other than China contributed to the growth," adding, "The reason the operating profit growth rate is lower than the sales growth rate is due to expenses incurred for brand advertising and year-end events."

This year, sales are expected to increase both domestically and overseas. In the United States, strengthening sales on major platforms, expanding entry into offline channels in Japan, and increasing presence in European K-beauty specialty channels are anticipated. He stated, "Exports this year are expected to increase to 22.8 billion KRW compared to the previous year, accounting for 19% of total sales."

Domestically, health and beauty (H&B) online channels are expected to be the center of growth. He explained, "Domestic sales are projected to reach 99.1 billion KRW, a 19.3% increase from the previous year," adding, "H&B is expected to see increased sales of core products and the entry of new brands, and online channels will focus on Coupang with plans to activate other channels as well."