[Click e-Stock] Hugel's Toxin Growth Story Continues... Target Price Raised

Hyundai Motor Securities Raises Target Price for Hugel to 400,000 Won
First Quarter Earnings Exceed Expectations

On May 12, Hyundai Motor Securities raised its target price for Hugel from 350,000 won to 400,000 won, maintaining its buy rating, stating that the growth story of its toxin business continues.

Hyunseok Kim, a researcher at Hyundai Motor Securities, commented, "Hugel's operating profit in the first quarter reached 47.6 billion won, up 20.1% year-on-year, surpassing expectations." He explained, "Export growth of toxin products to the United States, China, and Brazil drove the earnings growth." However, he noted, "The operating margin declined year-on-year due to investments for establishing a direct sales system in the United States."

Kim added, "Starting in the second half of this year, Hugel plans to begin direct sales of toxin products in the United States." He continued, "While initial investment costs in the second quarter will inevitably impact margins, after the launch of direct sales in the third quarter, both price (P) and volume (Q) are expected to increase, which will drive sales growth over the medium to long term."

He further stated, "Toxin sales are showing solid growth not only in the United States but also in China." He estimated, "First quarter sales to China grew by about 70% compared to the same period last year, and full-year sales in 2026 are expected to increase by more than 30% year-on-year."

He went on to say, "From the second half of the year, the effects of portfolio expansion are also anticipated." He explained, "In Korea, sales from the distribution of ECM skin booster 'Cellediem' are expected to begin from the third quarter." He also expressed expectations that "by establishing a full lineup of injectable procedures, including toxin, filler, and skin booster, synergy effects in sales will be realized."

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