[Click eStock] "HectoInnovation Achieves Record Quarterly Sales in Q2... Holds Attractive Valuation"

Yuji Investment & Securities analyzed on the 9th that Hecto Innovation has achieved its highest sales in the second quarter and holds valuation attractiveness compared to its peers in the same industry. The investment opinion 'Buy' and the target price of 19,000 KRW were maintained.

Hecto Innovation recorded consolidated sales of 77.8 billion KRW and operating profit of 11.2 billion KRW in the second quarter. Both increased by 8.4% and 18.0% respectively compared to the same period last year, achieving the highest quarterly sales.

Researcher Park Jong-sun of Yuji Investment & Securities said, "The positive aspect of the second-quarter performance is that the highest quarterly sales were achieved," adding, "The sales growth factor is that IT information services have continuously renewed their highest sales for 12 consecutive quarters, achieving a 23.6% sales growth compared to the same period last year." He continued, "Healthcare sales also increased by 12.5% year-on-year due to the expansion of distribution channels for the flagship product, Desimone, through online and offline external malls."

Researcher Park forecasted that Hecto Innovation will achieve sales of 80.1 billion KRW and operating profit of 12.3 billion KRW in the third quarter, representing increases of 8.5% and 19.0% respectively compared to the same period last year. He stated, "Along with stable sales growth of IT information services driven by new service launches, and continued sales growth through the expansion of premium probiotics in external mall channels, profitability is also expected to improve continuously. Currently, the stock price is trading at a price-to-earnings ratio (PER) of 5.8 times based on 2024 earnings, which holds valuation attractiveness compared to the domestic industry average PER of 14.3 times."