[Click eStock] "Hugel Escapes COVID Impact"... Full-Scale Overseas Sales Begin

[Asia Economy Reporter Ji Yeon-jin] Yuanta Securities announced on the 12th that it maintains a buy investment opinion and a target price of 235,000 KRW for Hugel, expecting sales to increase as toxin sales in China are becoming full-scale and the domestic market is also expanding.

Researcher Seo Mi-hwa of Yuanta Securities forecasted, "In the Chinese market, the repurchase rate of toxin products is increasing, overseas exports are rising due to the resolution of COVID-19 impacts, and the European approval of toxin products will be major triggers."

Hugel recorded sales of 63.8 billion KRW in the first quarter of this year, a 54.7% increase compared to the same period last year, and operating profit of 29.5 billion KRW, up 139%. The operating profit exceeded market expectations (22.6 billion KRW) by about 30%. The operating profit margin was 46.2%, improving by 16.3 percentage points compared to the same period last year.

Domestically, toxin sales increased by 110.7% year-on-year due to the base effect from last year and expanded market share. Filler sales grew by 46.1%. Toxin sales in Asia reached 12.1 billion KRW, growing 130.8%, driven by the second shipment volume to China (8 billion KRW) and increased exports to Thailand. Exports to the Latin America region increased by 84.4% year-on-year to 3.8 billion KRW.

Filler exports were affected by the lockdown in the UK but expanded sales in Norway, Sweden, Bulgaria, and Poland. Domestically, market share expanded by 46.1% year-on-year due to cross-selling and B2C marketing effects.

Researcher Seo said, "As of May 11, 1,100 clinics and hospitals have been secured in China, and the goal for this year is over 3,000," adding, "Sahwan Pharmaceutical is expanding local distribution channels, and Hugel is strengthening local academic marketing to expand the market, so achieving annual sales of 20 to 25 billion KRW seems feasible."

The company is currently undergoing the toxin approval process in Europe, with approval expected in the second half of the year. In the U.S., the BLA was submitted on March 31, and approval is expected in 2022. From the second quarter, pre-investment such as building the U.S. toxin business organization and preparing for launch will begin in earnest.

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