[Click eStock] "Jetema, Clear Direction for Export Growth... CB Overhang is a Burden"

Sangsangin Securities evaluated on the 27th that while the growth direction in the export market for Jetema is clear, the convertible bond overhang is a burden factor. They presented a 'Buy' investment opinion and a target price of 25,000 KRW.

Jetema produces and sells hyaluronic acid fillers, botulinum toxin, tissue sutures, and facial fixation lifting threads. Researcher Ha Taegi of Sangsangin Securities stated, "So far, growth has been centered on fillers. 80% of filler sales are exports," adding, "Currently, exports reach 60 countries with a distribution of 30% in Europe, 25% in Latin America, and 20% in Asia. The goal is to obtain product approval in China by the second quarter of next year, and through the partner company Hwadong Esthetic, meaningful filler exports are expected to occur from the second half."

Regarding toxin, Researcher Ha said, "Domestic product approval for toxin is scheduled for next month, so an increase in domestic and export sales is expected next year," and "After obtaining product approval in T?rkiye in the first quarter of next year, exports are expected to start in earnest from the second quarter. A five-year export contract worth 80 billion KRW has already been signed with a partner company in T?rkiye. This year's toxin sales are mostly exports to China, projected to increase by 3.6% year-on-year to 17.8 billion KRW. Next year, toxin sales are expected to increase by 20-30%, centered on exports."

Researcher Ha evaluated that although there is a short-term burden from the convertible bond overhang volume, the outlook is positive from a long-term perspective. He analyzed, "There may be short-term fluctuations in the stock price due to the convertible bond overhang burden, but the growth direction in the export market is clear."