[Click eStock] "Hugel, Steady Performance and Big Market Entry Expectations... Target Price Up"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities evaluated on the 19th that Hugel is expected to achieve solid performance growth due to export expansion in the Asia region centered on China, despite the seasonal off-season in the first quarter of this year. Accordingly, the investment opinion 'Buy' was maintained, and the target price was raised by 3.8% from the existing 265,000 KRW to 275,000 KRW.

Researcher Na Gwanjun of NH Investment & Securities analyzed, "The pipeline value following the U.S. approval application for Toxin Letibo was upgraded to 1.4728 trillion KRW from the previous 1.3677 trillion KRW," adding, "The total corporate value, combining the operating value and the pipeline value of Letibo, was estimated at 3.3919 trillion KRW."

It is evaluated that valuation rerating is expected through entry into big markets such as Europe and the U.S., starting with China. Researcher Na explained, "Since the beginning of this year, supplies of 3 billion KRW in January and 4.5 billion KRW in March were completed," and "Strengthening cooperation with partner Sahwan Pharmaceutical through the local Chinese corporation and full-scale entry into the Chinese market

is expected."

Approval for Toxin Letibo in Europe is also anticipated in the second half of this year. The U.S. approval application for Toxin Letibo was completed in April, and U.S. approval and launch are also expected in 2022.

Steady performance growth is also positive. Consolidated sales in the first quarter are expected to reach 60.6 billion KRW, up 46.9% year-on-year, and operating profit is expected to increase by 83.3% to 22.6 billion KRW. Researcher Na said, "Despite the seasonal off-season, solid performance growth is expected as the growth of toxin and filler continues," adding, "Due to the base effect from the spread of COVID-19 in the first quarter of last year, domestic sales of toxin and filler significantly increased compared to the same period last year."

He added, "Although it will decrease compared to the previous quarter, considering that the first quarter is a seasonal off-season, the trend is favorable."

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