[Click eStock] "JVM, Earnings Growth Momentum Strengthened... Target Price Raised"

On August 26, Sangsangin Securities maintained its "Buy" investment rating on JVM, raising its target price from 35,000 won to 38,000 won. The company cited strong export performance and the positive impact of domestic equipment price increases as factors that will strengthen earnings growth momentum in the second half of the year.

Ha Taegi, a researcher at Sangsangin Securities, analyzed on the same day, "Exports to North America, Europe, and Australia are increasing significantly, and domestic equipment sales are also expected to expand, especially in the fourth quarter." JVM, a company specializing in pharmacy automation systems (ATDPS), recorded sales of 47.5 billion won in the second quarter of this year (up 25.9% year-on-year) and operating profit of 10.9 billion won (up 58.7%).

There are three main growth drivers. First, the "Countmate," an automatic vial-based medicine counting device, is performing well in North American exports. The initial shipment was made through McKesson, Hanmi Pharmaceutical's partner, and an additional shipment worth about 2 billion won was delivered in the second quarter. Although exports may temporarily slow in the third quarter due to inventory depletion, they are expected to resume from the fourth quarter.

Second, the "Manis" automatic medicine sorting and packaging system, which utilizes a multi-joint collaborative robotic arm, continues to show growth. Nine units were exported last year, and six units have already been exported in the first half of this year. Researcher Ha commented, "A meaningful increase is expected in the second half, especially in Europe and Australia. Each unit is traded at around 1 billion won, and as the product enters its third year since launch, it has entered a full-fledged growth phase."

Third, domestic equipment sales are also expected to show clear improvement. The 10% price increase implemented in April will begin to have a full impact in the second half, and with the conclusion of the medical strike, domestic demand is expected to recover, particularly in the fourth quarter. Notably, as hospitals and pharmacies tend to execute their annual budgets intensively at the end of the year, sales growth is expected to be especially pronounced.

Researcher Ha added, "Based on this year's estimated earnings, the price-to-earnings ratio (PER) stands at 10.1 times. Considering that the export ratio has surpassed 50%, reflecting the company's growth potential, the current share price remains undervalued. As a long-term growth-oriented company, a buy-and-hold strategy is appropriate."

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