[Click eStock] "Chong Kun Dang, Favorable Business Environment Continues... Target Price Up"

KTB Investment & Securities Issues 'Buy' Rating and 210,000 KRW Target Price... Closing Price on 30th Last Month Was 152,500 KRW

[Asia Economy Reporter Kum Bo-ryeong] An analysis has emerged that Chong Kun Dang continues to maintain a favorable business environment.

According to KTB Investment & Securities on the 2nd, Chong Kun Dang's third-quarter operating profit on a separate basis was 48.5 billion KRW, a 140% increase compared to the previous year. Sales also grew by 28% to 357.5 billion KRW.

Lee Hye-rin, a researcher at KTB Investment & Securities, explained, "Sales of co-promotion items such as K-Cab, Prevnar, Prolia, and Qsymia further expanded, and existing key products like Lipiro, Emotn, and Tacrobel also continued to perform well. In the COVID-19 environment, sales of the pneumococcal vaccine Prevnar, which emphasizes vaccination effectiveness, greatly expanded to 25.2 billion KRW per quarter."

Sales continue to expand due to a favorable business environment for first- and second-year co-promotion items such as K-Cab (discontinuation of ranitidine products), Qsymia (discontinuation of competing product Belvic), and Prolia (expanded insurance coverage as a first-line treatment).

KTB Investment & Securities gave Chong Kun Dang a 'Buy' rating with a target price of 210,000 KRW, up from the previous 190,000 KRW. The closing price on the 30th of last month was 152,500 KRW. The researcher said, "The consecutive surprise earnings are due to reduced operating expenses from COVID-19 and the profitability leverage effect of co-promotion items whose sales are growing significantly, making short-term fluctuations unlikely. Although it is regrettable that visible R&D achievements are difficult to expect in the short term, the valuation is sufficiently attractive even reflecting only operational performance. At the current stock price near historical highs, the company decided to enter into a 20 billion KRW treasury stock trust contract in mid-October, and considering the increased profit strength, an upward revision of the year-end dividend is also expected."

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