[Click eStock] "Dongkook Pharmaceutical, Strong Q4 Performance Expected"

Shinhan Financial Investment Issues 'Buy' Rating and 41,000 KRW Target Price... Closing Price on 22nd at 27,500 KRW

[Asia Economy Reporter Kum Boryeong] There is a forecast that Dongkook Pharmaceutical's fourth-quarter performance will meet consensus expectations.

According to Shinhan Financial Investment on the 23rd, Dongkook Pharmaceutical's consolidated sales for the fourth quarter are estimated at 149.6 billion KRW, and operating profit at 25.6 billion KRW. These figures represent increases of 17.2% and 21.9%, respectively, compared to the same period last year.

Lee Dong-geon, a researcher at Shinhan Financial Investment, analyzed, "Based on the recovery of cosmetics sales, which had slightly slowed due to the seasonal off-season in the third quarter, and the growth in sales of high-profit over-the-counter (OTC) and ethical (ETC) pharmaceuticals, performance is expected to meet the consensus (sales of 149.6 billion KRW, operating profit of 25.9 billion KRW)."

Fourth-quarter OTC sales are expected to reach 38.5 billion KRW. Following the third quarter, major products (Pansidil, Sensia, Chisen, etc.) are expected to continue their strong sales growth. ETC sales are anticipated to record 36.6 billion KRW, a 26% increase compared to the same period last year, driven by steady growth in key products such as 'Propofol Injection.' The healthcare division is expected to see sales recovery due to the seasonal peak of its flagship product 'Madeca Cream,' along with continued strong sales of health functional foods and daily health products.

Shinhan Financial Investment has given Dongkook Pharmaceutical a 'Buy' rating with a target price of 41,000 KRW, up from the previous target of 40,000 KRW. The closing price on the 22nd was 27,500 KRW.

The researcher stated, "Next year, a revaluation of mid-sized pharmaceutical companies that continue to show strong performance based on differentiated portfolios is expected. Dongkook Pharmaceutical stands out with growth in its OTC business division, which has built strong brand recognition rather than focusing on generics. There is also potential synergy with the healthcare division utilizing well-known OTC brands such as 'Madeca Cream.' Given the increasing interest in mid-sized pharmaceutical companies, it is reasonable to apply a premium to Dongkook Pharmaceutical compared to its peers, as it possesses distinctive differentiation points."

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