[Click e-Stock] "Huons Meditech: Filler Exports and Composite Filler Development Expected...Long-Term Stock Price Upside Valid"

Target Price Raised

On June 2, SangSangin Securities stated regarding Huons Meditech, "We expect the company's stock price to gain upward momentum due to increased filler exports and anticipation for the development of composite fillers," adding, "It is necessary to approach the stock from a long-term rather than a short-term perspective." Accordingly, the brokerage maintained its 'Buy' investment rating and raised the target price from 56,000 won to 63,000 won.

Ha Taegi, a researcher at SangSangin Securities, explained, "Recently, the domestic business segments such as eye drops, toxins, and pharmaceutical CMO have shown stagnant growth, but filler exports are experiencing rapid growth." He added, "As domestic sales are stagnating due to intensified competition in Korea, overall company sales growth is only possible if export growth is achieved at this time."

In the fourth quarter of last year, total filler exports increased by 83.3% year-on-year to 9.5 billion won, and in the first quarter of this year, they rose by 17.9% to 9.2 billion won. In particular, exports to Brazil surged from 8 billion won in 2023 to 17 billion won in 2024, with 5.9 billion won already recorded in the first quarter of this year. Ha forecasts that, with body filler product approval expected in Brazil in the second half of the year, annual filler exports to Brazil will exceed 25 billion won in 2024.

Expansion into Southeast Asian markets such as Thailand and Vietnam is also accelerating. 'Elravie' and 'Revoline' are scheduled to launch in Thailand in the second quarter, and preparations are underway for Elravie's entry into the Vietnamese market. Exports to China temporarily declined due to the recent re-approval process (NMPA), but are expected to normalize from May.

Expectations for the composite filler 'Belphien' were also cited as a factor that could positively impact the stock price. Ha stated, "Belphien is expected to complete clinical trials in the first half of this year and apply for product approval to the Ministry of Food and Drug Safety in the second half," predicting that it could be launched in the second half of next year. He added, "If the clinical data for Belphien is positive in the second half of this year and the likelihood of a launch in the second half of next year increases, we can expect upward momentum for the stock price."

Regarding the new product 'Elravie Rituo', Ha commented, "Anticipation for this product has contributed to Huons Meditech's stock price increase, and it is meaningful in that it has expanded the portfolio as a skin booster." However, he also pointed out, "It still needs to be verified whether it can gain mass appeal and increase sales."