[Click e-Stock] "Hecto Innovation Achieves Record-High Sales for Six Consecutive Quarters... Healthcare Growth in Focus"

Eugene Investment & Securities stated on November 7 that Hecto Innovation "has continued its growth by achieving record-high quarterly sales for six consecutive quarters," adding, "We are particularly noting the strong performance growth in the healthcare division."

In a report released that day, Eugene Investment & Securities researcher Park Jongseon analyzed, "The company's preliminary consolidated results for the third quarter this year show sales of 95.6 billion won and operating profit of 14.7 billion won, representing increases of 19.2% and 5.4%, respectively, compared to the same period last year." He added, "All business divisions maintained growth, setting new record-high quarterly sales for six straight quarters, while profitability also remained at a solid level."

Park further explained, "The drivers of sales growth were increases of 5.4%, 11.9%, and 67.2% year-on-year in the IT information services, fintech, and healthcare divisions, respectively." He continued, "In particular, the healthcare division's growth was supported by diversification of distribution channels for its flagship product 'De Simone,' as well as expansion of its new product lineup, including the women's probiotic product 'Innerbiome' and the children's height growth health supplement 'Kim Seokjin Lab (LAB) I'm Big Key.'"

Eugene Investment & Securities also forecast that the healthcare division's strong sales growth will continue in the fourth quarter, driven by the launch of new products.

Park stated, "We expect consolidated fourth-quarter results to reach sales of 99.3 billion won and operating profit of 15.1 billion won, up 13.3% and 8.8%, respectively, from the same period last year." He added, "The current share price is trading at a 2024 estimated PER (price-to-earnings ratio) of 6.3 times, which is significantly discounted compared to the domestic peer average PER of 9.8 times." He maintained the target price at 21,000 won and the investment rating at BUY.

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