[Click eStock] "Hugel, Transforming into a Global Aesthetic Medical Company"

Samsung Securities Issues 'Buy' Investment Rating and Sets Target Price at 500,000 Won... Closing Price on 14th Was 411,500 Won

[Asia Economy Reporter Kum Bo-ryeong] It has been analyzed that Hugel is transforming into a global beauty medical company.

According to Samsung Securities on the 17th, Hugel's Q4 performance last year recorded consolidated sales of 54 billion KRW and operating profit of 17.5 billion KRW. Sales decreased by 8.2% compared to the previous year, but operating profit increased by 8.9%. Samsung Securities analyst Kim Seul said, "Except for cosmetics and domestic toxin, which had a high base in Q4 2018, sales in all other sectors grew steadily," adding, "However, labor costs rose as bonuses, which are usually reflected in Q1 of the following year, were accounted for in Q4. From this year, bonuses are expected to be reflected every Q4."

This year, domestic toxin and filler are expected to achieve sales growth in line with the market growth rate as the number one business in Korea. Toxin exports are expected to grow not only in China, where approval is anticipated in Q3, but also in South America, Taiwan, and other regions. Analyst Kim said, "The R&D cost guidance for this year is 18 billion KRW, which is expected to increase by 75% compared to last year. The purpose is to develop new toxin formulations and expand the portfolio through licensing-in," adding, "Capital expenditure (CAPEX) is also expected to increase due to the expansion investment of the toxin filler factory. However, considering the net cash position, the scale is not burdensome."

Kim further added, "Starting with approval in China in Q3 this year, we expect approvals in Europe in the second half of 2021 and in the United States in 2022. We maintain a positive view on the value of Botulax, which is on the verge of entering the global big market."

Samsung Securities gave Hugel a 'Buy' investment opinion with a target price of 500,000 KRW. The closing price on the 14th was 411,500 KRW.

This content was produced with the assistance of AI translation services.