[Click eStock] Yuhan Corporation, Operating Profit Expected to Increase... Target Price Raised

[Asia Economy Reporter Hwang Yoon-joo] Cape Investment & Securities maintained a 'Buy' rating on Yuhan Corporation on the 28th, reflecting the value of the monotherapy of Lazertinib, and raised the target price to 83,500 KRW.

Researcher Oh Seung-taek of Cape Investment & Securities stated, "The expected performance for 2022 is projected to be sales of 1.8467 trillion KRW (YoY 9.4%) and operating profit of 74.7 billion KRW (YoY 53.7%, OPM 4.0%)."

Researcher Oh emphasized, "Approval for the combination therapy of Rexlar's 'Amivantamab,' the first global blockbuster new drug candidate in Korea, is expected within the first half of 2023," adding, "It is also time to pay attention to the value of the monotherapy clinical trial of Lazertinib, which recently completed patient recruitment."

He explained, "The primary data announcement for the Lazertinib clinical trial is expected in December 2022. The primary endpoint is progression-free survival (PFS), and the later the clinical data results are, the longer non-small cell lung cancer (NSCLC) patients have survived."

Researcher Oh said, "Following the recovery of the health lifestyle sector and the OTC/ETC sectors, which had recorded deficits, the company focused on normalizing performance after the COVID-19 crisis," adding, "With sales improvements from subsidiaries Adpharma and Yuhan Health & Living, a recovery from 2.9% in 2021 to 4.0% in 2022 is expected."

However, he added, "This year, regardless of research outcomes, the decrease in royalty income from Janssen and marketing expenses for the new health supplement brand (WiseBiome) limit the improvement in profit margins, making a full recovery to pre-COVID levels partially constrained."

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