[Click eStock] HK Innoen, Excessive Earnings Concerns "Start of Strong Performance"

Hana Securities announced on the 2nd that it maintains a buy rating and a target price of 45,000 KRW for HK Innoen.

Jae-kyung Park, a researcher at Hana Securities, stated, "Despite concerns about intensified competition in the domestic market for P-CAB drugs, K-CAB's prescription dispensing amount continues to record steady double-digit growth." He added, "Furthermore, K-CAB is solidifying its position by expanding insurance coverage to include H.pylori eradication therapy, and technology transfers to Japan and Europe are progressing smoothly." Therefore, the investment points for HK Innoen remain valid, and a positive investment opinion is maintained.

He forecasted that the second half of this year will be the point when growth drivers fully materialize. HK Innoen's sales for this year are projected at 833.7 billion KRW (-1.5%), and operating profit at 66.6 billion KRW (26.7%). Sales of K-CAB 50mg and 25mg are estimated at 86.4 billion KRW (1.1%), and sales of K-CAB orally disintegrating tablets at 25.6 billion KRW (473.9%). Although the prescription dispensing amount remains solid, reflecting inventory adjustments by partner company Chong Kun Dang, domestic sales of K-CAB were slightly revised downward. However, meaningful export sales (8.5 billion KRW) are expected to begin this year, which is anticipated to compensate for this gap.

Researcher Park explained, "The second half of this year is the time when the previously expected growth drivers will fully take off," adding, "K-CAB began generating substantial sales in China starting March this year with the application of Chinese insurance, and royalties from K-CAB sales in China are expected to be received from the third quarter."

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