[Click eStock] "Hugel, COVID-19 Impact Unavoidable... Target Price Down 8%"

[Asia Economy Reporter Minji Lee] KB Securities maintained a buy rating on Hugel on the 26th, stating that poor performance is inevitable due to the impact of the novel coronavirus infection (COVID-19), and set a target price of 470,000 KRW, down 7.8% from the previous level.

Hugel's first-quarter sales are expected to be 38.2 billion KRW, and operating profit 10.9 billion KRW, down 22% and 33% respectively compared to the same period last year. This is based on the judgment that visits to hospitals and clinics sharply decreased starting mid-February, when the rapid spread of COVID-19 began.

Accordingly, domestic toxin sales (-22.5%) and filler sales (-19%), as well as overseas toxin sales (-9%) and filler sales (-11%), are expected to decline significantly compared to a year ago. Cosmetic sales are also expected to decrease by 53.8% during the same period due to delays in cosmetic exports to China and poor duty-free shop sales.

Researcher Taeyoung Lee of KB Securities explained, "There is relatively low exposure to sales in Europe and North America, where consumer sentiment is expected to worsen further, so there is no major concern," adding, "Performance is expected to gradually normalize as we enter the second half of the year."

In the case of Botulex, approval in China was expected to be delayed due to the impact of COVID-19. However, considering that the waiting number advanced to number 2 as of the 16th, it is expected that approval in China will be obtained within the first half of the year.

Researcher Lee said, "The submission of the BLA for approval in Europe and the United States is scheduled to proceed as planned within the first half of the year," and added, "Both procedures are expected to receive approval in the second half of next year."

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