Corporate Logo(source: pharmaresearch.co.kr)
Korea Investment & Securities on August 11 raised its target price for PharmaResearch (214450) by 11%, citing the company’s continued streak of earnings surprises.
PharmaResearch earlier reported preliminary second-quarter results, posting revenue of 140.6 billion won and operating profit of 55.9 billion won. Operating profit rose 81.7% from a year earlier, surpassing the market consensus by 6.2%.
Analyst Kang Si-on noted, “Leveraging its leading position in the skin booster market, the company has steadily attracted both domestic and overseas customers, while the growing adoption of combination treatments involving other procedures and Rejuran has fueled demand expansion.”
He added, “The brand power of Rejuran is extending to other business segments, driving solid growth even in areas previously considered to have limited potential. Consequently, the company continues to deliver earnings surprises despite rising market expectations.”
Kang expects multiple drivers to support earnings from the second half of this year into 2025. In the third quarter, PharmaResearch plans to sign a distribution agreement with a European partner, followed by the launch of Rejuran in more than 10 countries during the fourth quarter.
He further pointed out that in 2025, revenue contributions from Rejuran in Europe and energy-based device (EBD) equipment will be fully reflected, while pharmaceutical sales growth is projected to accelerate in the second half with the expansion of the company’s toxin manufacturing facility.
Kang raised his earnings per share (EPS) forecasts for 2024 and 2025 by 6.3% and 7.9%, respectively, maintaining a “Buy” rating and lifting the target price from 720,000 won to 800,000 won.
Corporate Logo(source: pharmaresearch.co.kr)
Korea Investment & Securities on August 11 raised its target price for PharmaResearch (214450) by 11%, citing the company’s continued streak of earnings surprises.
PharmaResearch earlier reported preliminary second-quarter results, posting revenue of 140.6 billion won and operating profit of 55.9 billion won. Operating profit rose 81.7% from a year earlier, surpassing the market consensus by 6.2%.
Analyst Kang Si-on noted, “Leveraging its leading position in the skin booster market, the company has steadily attracted both domestic and overseas customers, while the growing adoption of combination treatments involving other procedures and Rejuran has fueled demand expansion.”
He added, “The brand power of Rejuran is extending to other business segments, driving solid growth even in areas previously considered to have limited potential. Consequently, the company continues to deliver earnings surprises despite rising market expectations.”
Kang expects multiple drivers to support earnings from the second half of this year into 2025. In the third quarter, PharmaResearch plans to sign a distribution agreement with a European partner, followed by the launch of Rejuran in more than 10 countries during the fourth quarter.
He further pointed out that in 2025, revenue contributions from Rejuran in Europe and energy-based device (EBD) equipment will be fully reflected, while pharmaceutical sales growth is projected to accelerate in the second half with the expansion of the company’s toxin manufacturing facility.
Kang raised his earnings per share (EPS) forecasts for 2024 and 2025 by 6.3% and 7.9%, respectively, maintaining a “Buy” rating and lifting the target price from 720,000 won to 800,000 won.