[Featured Stock] Daewoong Pharmaceutical Rises Over 4% on Expectations of Strong Q4 Earnings Last Year

The stock price of Daewoong Pharmaceutical, expected to post strong results in the fourth quarter of last year, is on the rise. As of 9:52 a.m. on the 9th, Daewoong Pharmaceutical was trading at 131,200 KRW, up 6,000 KRW (4.79%) from the previous trading day.

On the same day, SK Securities maintained a buy rating and a target price of 210,000 KRW for Daewoong Pharmaceutical, stating, "Strong performance is expected due to the growth of high-margin products and efficiency improvements in selling and administrative expenses in the fourth quarter of last year."

For the period, consolidated sales are expected to be 369.7 billion KRW and operating profit 34.8 billion KRW, representing increases of 2.2% and 21.2% respectively compared to the same period last year, in line with market consensus estimates. On a separate basis, sales are projected at 325.9 billion KRW and operating profit at 38.7 billion KRW, with operating profit expected to exceed market consensus estimates by 11.7%, indicating strong performance.

Lee Seon-kyung, a researcher at SK Securities, said, "Improved cost ratios due to the high growth of high-margin products such as Pexuclu, Nabota, and Urusa ETC, along with internal efficiency strategies for selling and administrative expenses, will minimize the historically concentrated cost increases in the fourth quarter. Approval for the commercialization of Pexuclu and Nabota in China is anticipated this year. As uncertainties regarding non-operating corporate value are also expected to be resolved, attention to the undervalued core business and entry into the Chinese market is likely to increase."