[Click eStock] "Hugel, Focus on Earnings Growth Rather Than Sale Issues... Target Price Up"

[Asia Economy Reporter Song Hwajeong] NH Investment & Securities on the 27th raised the target price for Hugel from the previous 275,000 KRW to 325,000 KRW, stating that attention should be paid to the stable earnings growth rather than the sale issue. The investment opinion was maintained as 'Buy.'

Hugel's second-quarter earnings this year are expected to exceed market expectations (consensus). NH Investment & Securities estimated Hugel's second-quarter consolidated sales and operating profit to be 65.6 billion KRW and 26.4 billion KRW, respectively, up 35.8% and 58.1% compared to the same period last year. The operating profit figure is 10.2% higher than the consensus.

Researcher Na Gwanjun of NH Investment & Securities explained, "Domestic sales of toxin and filler are estimated at 22 billion KRW and 6.3 billion KRW, respectively, up 11% and 42% compared to the same period last year," adding, "A seasonal peak effect confirms domestic recovery, and steady domestic sales of toxin and filler are expected due to increased demand for cosmetic procedures in Korea." Exports are estimated at 13.7 billion KRW for toxin and 14.4 billion KRW for filler, up 98.7% and 58.7% year-on-year, respectively. Researcher Na said, "Due to decreased exports to Asian countries other than China and Latin America, total toxin exports are expected to decline compared to the previous quarter," but analyzed, "However, an increase in filler exports to the UK and Northern Europe is confirmed, which will offset the decrease in toxin exports."

The opinion is that attention should be paid to the stable earnings growth rather than the sale issue. Researcher Na said, "Regardless of the major shareholder's stake sale issue, stable earnings are being demonstrated fundamentally," and added, "In the second half of this year, approval for 'Retivo' in Europe and expected approval in the US in 2022 are anticipated, leading to a revaluation (rerating) of valuation through entry into global big markets such as China, Europe, and the US."

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