[Featured Stock] "Undervalued Aesthetic Medical Company" Hyaluronic Rises Over 6%
The stock price of Hironics, a beauty and medical device company, is strong on the 26th. At 9:40 a.m. that day, Hironics was trading at 9,770 won, up 570 won (6.20%) from the previous trading day. Hironics was established in 2007 and is the first company in Korea to develop high-intensity focused ultrasound (HIFU) beauty medical devices.
Researcher Lee Chung-heon of Value Finder said about Hironics, "This year, sales are expected to reach 49.5 billion won and operating profit 11.9 billion won. This represents increases of 46.9% and 124.5%, respectively, compared to last year." He added, "With the expansion of overseas export proportions and rapid growth in sales in North and South America, expectations for future growth are rising. The product sales strategy has been changed since last year to increase the proportion of consumables, which will also improve profitability."
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He continued, "The stock is currently trading at a price-to-earnings ratio (PER) of 16.8 times based on this year's forecast. Considering that the average expected PER for major domestic beauty medical device companies (Classys, J.CIS Medical, Wontech, Biol) is 22.5 times this year, it is currently at about a 25% discount." He added, "If the operating leverage effect due to the increase in the proportion of consumables sales is confirmed, further upward revisions in performance are possible."
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