[Click eStock] "Pharmaresearch, Strong Domestic Sales and Exports... Increased Valuation Appeal"

Korea Investment & Securities evaluated Pharmaresearch on the 13th, stating that its solid domestic demand and upward trend in exports make its valuation attractive. No investment opinion or target price was provided.

Pharmaresearch recorded consolidated sales of 83.3 billion KRW and operating profit of 30.8 billion KRW in the second quarter of this year. These figures represent increases of 24.7% and 30.1% respectively compared to the same period last year, surpassing market expectations by 5.3% and 8.0%. Si-on Kang, a researcher at Korea Investment & Securities, explained, "The growth of Rejuran in the domestic market was significantly higher than previously expected," adding, "Additionally, there was increased demand for Rientox in China and growth in cosmetics sales to Japan and Southeast Asia."

Given the steady domestic demand confirmed in the second-quarter results, Kang said that attention is expected to focus on export performance going forward. He stated, "Rejuran is showing gradual growth in existing launch countries, with new entries planned for Mexico and Taiwan in the second half of the year," and added, "Cosmetics sales are also expected to increase exports mainly to Japan and Southeast Asia, as the brand awareness established by Rejuran leads to cosmetics consumption." He further noted, "The solid domestic market, upward export trends across all business divisions, and rising brand awareness of Rejuran in regions not yet entered are reflected in the continuous increase of the target multiple."