[Click eStock] "Humedics, Filler Sales Expansion... Target Price Up 5%"

Sangsangin Securities Report

Sangsangin Securities maintained a buy rating on Humedix on the 12th and raised the target price by 5% to 42,000 KRW.

Humedix is a total aesthetic specialized company equipped with fillers, ophthalmic products, and toxins. Based on hyaluronic acid, it is expanding sales of filler and eye drop products, and the product sales of Liztox introduced from its affiliates are also being reflected.

Humedix's expected sales for the second quarter are 37.5 billion KRW, and operating profit is expected to grow 19% and 24.3% year-on-year to 9.5 billion KRW, respectively. This reflects the favorable sales atmosphere in the aesthetic industry due to the COVID-19 endemic.

Sales of high-margin fillers are growing significantly. Fillers (Elavie and Revoline brands) recorded 11.3 billion KRW in the first quarter, a 65% increase year-on-year, and are expected to increase by 50% to 11.7 billion KRW in the second quarter. Researcher Ha Taegi of Sangsangin Securities explained, “Domestic sales and exports are both experiencing high growth, with recent export proportions exceeding domestic sales proportions,” adding, “Exports to China and Brazil are significantly increasing due to the COVID-19 endemic.”

The impact of the administrative disposition on 100-unit Liztox is limited. Even if the Ministry of Food and Drug Safety issues product approval cancellations and six-month production suspensions for the 100-unit, it is highly likely to be resolved through provisional injunction lawsuits. Researcher Ha Taegi said, “In similar previous cases, major domestic toxin manufacturers filed provisional injunction lawsuits and were granted approval within 10 days, allowing normal business operations,” and analyzed, “Looking at toxin sales, the 50-unit and 200-unit products launched in January last year have increased sales, driving overall high growth of Liztox.”

Expectations for new products are also high. In the second half of this year, heparin sodium raw material is scheduled to be newly launched, and after the second half of next year, PN composite fillers and PN arthritis products are planned for release. Researcher Ha Taegi evaluated, “This is a point where the upward trend can continue for a long time in a flow with great sales growth potential,” adding, “The overhang volume of convertible bonds worth 45 billion KRW issued in April 2021 is being smoothly absorbed.”

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