[Market Focus] Suheung Surges on Surprise Second-Quarter Earnings

As of 9:20 a.m. on August 14, shares of Suheung were trading at 23,800 won on the Korea Exchange, up by the daily price limit of 29.77% compared to the previous closing price. This surge appears to be due to the company’s announcement of its second-quarter earnings, which significantly exceeded expectations, in a business report released the previous day.

Suheung is engaged in the manufacturing of hard capsules, contract manufacturing of pharmaceutical soft capsule formulations, production of health functional foods, as well as raw materials and cosmetics businesses. Since the beginning of this year, both domestic sales and exports in the health functional food sector have surged, driving the company’s performance. In particular, health functional food capsule exports generated sales of 30.5 billion won in the first half of the year, surpassing last year’s full-year sales of 27.2 billion won.

In the second quarter, the company posted sales of 190 billion won and operating profit of 20.1 billion won. These figures represent sharp increases of 10% and 84%, respectively, compared to the same period last year. Both sales and operating profit exceeded market estimates of 180.1 billion won and 9.6 billion won, respectively.