[Click eStock] "Hu젤 North America Business Uncertainty Resolved... Target Price Raised↑"

Daol Investment & Securities raised Hugel's target stock price from 270,000 KRW to 350,000 KRW on the 11th.

In the USITC preliminary ruling, Hugel was found not to have violated Section 337 of the Trade Act. Following the preliminary ruling victory, the uncertainty surrounding Hugel's North American business was resolved. Daol Investment & Securities reflected a value of 400 billion KRW for the North American business in raising the target stock price and maintained a buy rating.

With Hugel's ITC victory becoming clear, the uncertainty regarding the North American business has been eliminated. The remaining procedures include the final decision by the ITC commission and the presidential order, which are expected in four months.

Hugel's Letivo is the sixth cosmetic toxin approved in North America. Daol Investment & Securities expects Hugel to establish a partnership in the second half of 2024 and has valued the North American business at 435 billion KRW. Assuming an 8% market share in North America by 2030, it is forecasted that the pre-tax operating profit margin of the North American business will gradually increase up to 86% due to operating leverage from depreciation expenses related to the new factory and US toxin development.

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