[Featured Stock] Daewoong Pharmaceutical Rises Over 3% on 'Profit Improvement'

The stock price of Daewoong Pharmaceutical, expected to improve profits due to strong sales of high-margin items Nabota and Pexuclu and efficiency in operating expenses, is on the rise.

As of 9:34 a.m. on the 13th, Daewoong Pharmaceutical was trading at 134,600 KRW, up 4,000 KRW (3.06%) from the previous trading day.

On the same day, Daol Investment & Securities maintained a buy rating and a target price of 210,000 KRW for Daewoong Pharmaceutical, stating, "With separate sales of 327.4 billion KRW and operating profit of 39.5 billion KRW expected in the fourth quarter of last year, operating profit is expected to exceed the market consensus."

The factors expected to contribute to the strong performance include robust sales of Nabota and Pexuclu and efficiency in operating expenses. Jonghyun Park, a researcher at Daol Investment & Securities, said, "Monthly sales of Pexuclu in the fourth quarter of last year increased to about 8 billion KRW. Nabota sales are expected to reach 49.6 billion KRW, a 47% increase compared to the same period last year," adding, "Due to efficiency in operating expenses, the operating profit margin (OPM) for the fourth quarter of last year is also expected to reach 12.1%."

Researcher Park added, "Due to investments in the Magok C&D Center and Nabota’s third factory, expected to be completed next year, the dividend payout ratio may be disappointing compared to other companies," but he also noted, "Profit improvement due to increased exports of proprietary ethical drugs (ETC) and Nabota is noteworthy."