[Click e-Stock] "PharmaResearch to Prove Itself with Fourth-Quarter Results"

On December 2, Daol Investment & Securities projected that PharmaResearch would deliver solid results in the fourth quarter, driven by growth in both domestic and export markets. The firm maintained its Buy rating and a target price of 800,000 won.

Park Jonghyun, a researcher at Daol Investment & Securities, stated, "Concerns about PharmaResearch's derating (a decline in the price-earnings ratio) are interpreted as intensifying domestic competition due to the launch of new products." He added, "However, despite the introduction of competing products such as Juvelook and ECM Filler, the company continued to achieve sales growth."

Park explained, "The growth of domestic medical tourism, driven by the implementation of the Hanilryeong policy in China and the visa-free program, is expected to offset concerns about market share erosion." He also noted, "The combined share of medical tourism consumption from China and Japan exceeds 60%."

PharmaResearch is expected to achieve domestic medical device sales of 66 billion won in the fourth quarter, representing a 58% year-on-year increase, due to the return of medical professionals and the peak season effect. Next year, domestic medical device sales are estimated at 299.1 billion won, a 29% increase from the previous year.

Park also addressed concerns about PharmaResearch's export performance, stating that these worries are unfounded. Previously, news from the Korea Customs Service in November indicated that the export market had underperformed expectations, causing PharmaResearch's stock price to plummet by 15%.

Park commented, "PharmaResearch maintains its stance that fourth-quarter exports will surpass the record-high level achieved in the second quarter." He continued, "With shipments to the United Kingdom scheduled for December and considering that the fourth quarter is a seasonal peak for exports, we can expect an increase in sales compared to the second quarter."

Park stated, "We expect concerns about both domestic and overseas markets to be gradually resolved through the release of medical tourism consumption data on December 11 and export data from the Korea Customs Service on January 1 next year." He concluded, "The company has entered the lower end of its 2024 valuation range, and we maintain our top pick recommendation within the sector."

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