[Click e-Stock] "Pharmtec Korea Expected to Achieve Record-High Results This Year... Target Price Raised"

On July 24, KB Securities maintained its 'Buy' investment rating on Pharmtec Korea, raising its target price to 79,500 won, stating that the company is expected to achieve record-high results this year.

According to KB Securities, Pharmtec Korea's estimated second-quarter results are sales of 100.4 billion won (a 17.4% increase year-on-year) and operating profit of 14.9 billion won (a 17.3% increase, with an operating margin of 14.9%), both marking quarterly record highs. KB Securities researchers Sung Hyundong and Jeon Sohee explained, "As the growth trend of K-beauty led by indie brands continues, the company is expanding its customer portfolio based on a diverse range of container products such as pumps, tubes, compacts, and sticks."

As a result, the company is also projected to achieve record-high annual results in 2025, with sales of 403.6 billion won (a 19.6% increase) and operating profit of 60.7 billion won (a 25.5% increase, with an operating margin of 15.0%).

Pharmtec Korea has recently been rapidly expanding its production capacity. The company stated, "The newly constructed Plant 4 is scheduled for completion between September and October, and Plant 6 is expected to begin operations in the first quarter of 2026." Its subsidiary, Bukuk TNC, also plans to increase the production capacity of tube-type cosmetic containers by up to 20% by utilizing idle space within the plant.

The report also mentioned valuation, referencing the recent case of unlisted company Samhwa being sold to global private equity fund KKR for 800 billion won. Samhwa, along with Yonwoo and Pharmtec Korea, is a leading company in the cosmetic container sector, recording consolidated sales of 186.8 billion won and operating profit of 31.4 billion won in 2024. KB Securities evaluated, "Despite Pharmtec Korea having an advantage in terms of sales and product portfolio, its current market capitalization remains at 778.7 billion won, placing it in a relatively undervalued range."

The researchers explained, "The reason for raising the target price is due to the change in the EPS calculation period and the upward revision of earnings estimates," adding, "We have adjusted the 12-month forward EPS to 4,132 won, and applied the same target P/E of 19.5 times as before."

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