[Click eStock] "HK Innoen, Major Changes in 2024... Target Price Up"

On the 18th, SK Securities raised the target price for HK Innoen to 56,000 KRW, stating that "significant changes are expected in the 2024 performance." The investment rating was maintained at 'Buy.'

Researcher Lee Dong-geon estimated, "The 2024 sales and operating profit are expected to increase by 10.8% and 46.6% year-on-year, reaching 909.1 billion KRW and 96 billion KRW, respectively," adding, "The operating profit margin (OPM) is expected to reach 10.6%."

He explained, "Significant changes in performance are anticipated due to improvements in the domestic K-CAB commission rate, the termination of the MSD vaccine contract, the launch of Boryung's 'Kanab Family' distribution, and the inclusion of sales from newly introduced products such as Sidaphvia and Jikduo."

He further noted, "The biggest change not only in sales but also in profits is the change in the K-CAB commission rate due to a change in partners," adding, "With the partner changing to Boryung, K-CAB sales, which had been limited due to the impending termination of contracts with the previous partner, are expected to increase significantly, including inventory supply in the first quarter of this year." Since the commission rate is understood to have improved, profitability is also expected to rise meaningfully.

He continued, "Although the termination of the MSD vaccine contract may be disappointing in terms of sales, it is expected to have little impact on performance as profitability was minimal," diagnosing, "Rather, through the distribution of the Kanab Family, sales are expected to reach the low to mid-100 billion KRW range. This will offset the sales gap from the MSD vaccine and further improve profitability."

Meanwhile, the individual sales and operating profit for the fourth quarter of last year were estimated at 215.7 billion KRW and 22.1 billion KRW, down 0.3% and up 163.5% year-on-year, respectively. This is in line with the existing consensus (average forecast).

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