[Click eStock] "Yuhan Yanghang Expects 65 Billion KRW Technology Royalties This Year"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a 'Buy' rating on Yuhan Corporation on the 28th, expecting improved performance this year due to the inflow of 65 billion KRW in technology fees related to research and development (R&D). The target price was raised by 3.57% from the previous 280,000 KRW to 290,000 KRW.

Hong Gahye, a researcher at Daishin Securities, stated, "Q4 consolidated sales decreased by 4.9% year-on-year to 393.7 billion KRW, net profit dropped by 72.2% to 2.7 billion KRW, and operating profit increased by 10.6% to 8.5 billion KRW," adding that "both sales and operating profit fell short of our estimates and consensus.

Researcher Hong diagnosed that the reason for Yuhan Corporation's sales decline last year was mainly due to a 6% decrease in prescription drug sales to 255.3 billion KRW caused by the price reduction of Biread, and the poor performance of its raw material pharmaceutical subsidiary, Yuhan Chemical.

However, this year, performance improvement is expected due to the inflow of R&D technology fees.

He projected, "A sales turnaround is expected from the inflow of technology fees," and "especially, with progress in the development stage, it is anticipated that approximately 65 billion KRW in technology fees will be received from partners such as JNJ, Gilead, and Boehringer Ingelheim, enabling a significant profit improvement."

Accordingly, Yuhan Corporation's consolidated sales for this year are forecasted to increase by 7.6% year-on-year to 1.5929 trillion KRW, and operating profit is expected to surge by 482.5% to 73 billion KRW.

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