[Click e-Stock] "JVM, Exports to Europe and North America Rise... Target Price Set at 35,000 Won"

On May 7, Sangsangin Securities stated its view on JVM, saying, "Operating margin is expected to rise due to strong exports to North America and Europe, as well as an improved sales mix of high value-added products." The firm maintained a "Buy" rating and set a target price of 35,000 won.

On this day, Ha Taegi, a researcher at Sangsangin Securities, said, "The stock price could rise further, driven by improved operating results based on increased exports in the second half of the year."

JVM is a subsidiary of Hanmi Science. The company provides an automated pharmacy system (ATDPS) that enables hospitals and pharmacies to input patient prescription information, manage, classify, distribute, and package medications, print medication information, manage expiration dates, and track cumulative and aggregated inventory quantities.

Researcher Ha analyzed, "In the first quarter of 2025, revenue increased by 6.6% year-on-year to 42.8 billion won, while operating profit rose by 21.1% to 8.9 billion won." He added, "Exports grew by 14.1% to 21.8 billion won, expanding the export share to 50.9%, which drove overall sales growth."

In particular, exports to North America surged by 20.2% year-on-year, while exports to Europe rose by 14.8%. Researcher Ha pointed out, "This was due to the initial shipment of the fully automated vial-based medication counting system, Countmate, to North America through Hanmi Pharmaceutical's partner McKesson this year." He added, "Sales are also expected to occur again in the second half of the year."

Regarding investment points, Researcher Ha first cited increased exports and an improved product sales mix. He explained, "Export competitiveness has been strengthened through the development of Countmate and Menis," and added, "As a result, exports to North America, Europe, and Australia are being promoted, and exports are expected to increase significantly this year."

He also noted, "The price of domestic equipment was raised by 10% starting last month, which will lead to increased domestic equipment sales. This will serve as a direct driver of sales growth from the second quarter of this year through the first quarter of next year." He went on to explain, "The proportion of sales in the second half is also high. The fourth quarter is the peak sales season every year, as hospitals and pharmacies exhaust their annual budgets, and there is also demand for expanding consumable inventories, so sales are expected to increase significantly."

Regarding this year's expected performance, he said, "Annual consolidated revenue is projected to increase by 8.0% year-on-year to 172.1 billion won, and operating profit is expected to rise by 15.8% to 35.5 billion won." He added, "Based on this year's estimated earnings, the price-earnings ratio (PER) is 8.5 times. Given the current export share of around 50% and growth potential, the stock is undervalued."