[Click eStock] "Rejuran-Centered Earnings Growth... Pharmaresearch Target Price Up"

Sangsangin Securities on the 11th raised the target price for Pharmaresearch from 230,000 KRW to 300,000 KRW, stating that "performance growth will continue centered on the beauty medical device Rejuran." The buy rating was also maintained.

On the same day, researcher Ha Taegi of Sangsangin Securities said, "With Rejuran's high growth rate, the possibility of entering the global market, and the strength of K-Beauty, there is significant potential for further stock price increases of Pharmaresearch," adding, "It is advisable to maintain a buying strategy from a long-term perspective."

For the third quarter of this year on a consolidated basis, sales are expected to reach 84.7 billion KRW, up 23.0% from the same period last year, and operating profit is expected to increase by 14.8% to 31.6 billion KRW. This shows growth compared to the second quarter sales of 83.1 billion KRW and operating profit of 30.8 billion KRW.

In particular, domestic growth in the medical device sector is expected to contribute significantly. Third-quarter medical device sales are projected at 43.7 billion KRW, a 17.8% increase year-on-year, with domestic sales expected to rise 16.0% to 31.8 billion KRW. Researcher Ha noted, "The increase in domestic medical expenses demand and medical tourism demand are major factors," adding, "Exports continue to key countries such as China, Japan, and Thailand, and the company entered the Australian and Chilean markets in the second half of last year. Entry into three South American countries including Mexico and Taiwan is expected this year."

Export growth is also anticipated in the cosmetics sector. Researcher Ha said, "The cosmetics sector, which saw sales decline due to a reduction in home shopping proportion, is expected to record third-quarter sales of 19.7 billion KRW, a 40.9% increase compared to the same period last year," adding, "Although the amount is similar to the second quarter, the growth rate appears high due to the base effect."

He further stated, "Recently, a 200 billion KRW paid-in capital increase was announced from Polish Company, a special purpose company (SPC) established by CVC Capital," adding, "Through this, the entry of Rejuran into advanced markets is expected to accelerate. As Rejuran's global market entry potential greatly expands, the corporate value will also increase significantly."