[Click eStock] "Hugel, Export-Driven High Growth... New Target Price Set at 360,000"

Sharp Increase Expected in Telecommunications Exports
Improvement in Global Business Environment Also a Positive Factor
Hugel's Corporate Value Expected to Continue Rising

Sangsangin Securities on the 19th newly issued a 'Buy' investment rating and a target price of 360,000 KRW for Hugel, citing clear high growth centered on exports. Hugel's closing price on the previous trading day was 272,000 KRW.

Researcher Ha Taegi of Sangsangin Securities stated, "Hugel has established itself as the largest aesthetic company in Korea based on a diverse business portfolio including toxins, fillers, and cosmetics," adding, "Through synergies in the toxin, filler, suture, and cosmetics sectors, it continues high growth centered on exports, with the export ratio reaching 59.6% in the first half of the year."

Hugel is expected to see a significant increase in toxin exports starting in 2025. Although toxin sales in the domestic market, where price competition is fierce, decreased by 7.5% year-on-year to 37.4 billion KRW in the first half of 2024, Hugel still maintains the number one position domestically. On the other hand, the export sector recorded 47.8 billion KRW in the first half, showing a high growth rate of 41.2% year-on-year. Exports are expanding particularly in China, as well as Japan, Thailand, five South American countries including Brazil, and Canada. In the United States, Hugel obtained FDA approval and signed a distribution contract with the local partner Benev, with exports expected to begin in the second half of 2024 and full-scale sales anticipated from 2025.

The filler sector also shows clear export-centered growth. Filler sales in the first half of 2024 increased by 16.3% year-on-year to 65.7 billion KRW, with exports rising 20.8% to 49.9 billion KRW, mainly in the Asia/Pacific and Latin American regions.

Researcher Ha said, "As the global business environment for the Korean aesthetic industry improves, an increase in exports of K-toxin/filler is expected following K-beauty," adding, "Hugel is evaluated to continuously increase its corporate value by leading the aesthetic sector and growing centered on exports."