[Click eStock] Yuhan Yanghaeng, Stable Performance... Target Price Down Due to Net Debt Changes

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[Asia Economy Reporter Lee Seon-ae] Hana Financial Investment announced on the 15th that it maintains a buy rating on Yuhan Corporation but slightly lowered the target price from 87,000 KRW to 85,000 KRW. This adjustment reflects changes in net debt.

Jae-kyung Park, a researcher at Hana Financial Investment, explained, "Although the target price is slightly lowered due to changes in net debt, there are upcoming R&D events related to the main pipeline Lazertinib this year, which is expected to enable stock price re-rating."

Researcher Park forecasted that Yuhan Corporation's consolidated sales and operating profit for the first quarter will increase by 13% and 10.3% year-on-year to 428.3 billion KRW and 15.3 billion KRW, respectively. This performance aligns with consensus estimates. Compared to the first quarter of last year, royalty income is expected to decrease, but prescription drugs, over-the-counter drugs, health & wellness, and overseas business segments are anticipated to grow evenly. Despite the decline in royalty income this year, balanced growth across all business divisions is expected to result in sales increasing by 0.4% year-on-year to 1.8459 trillion KRW and operating profit rising by 8.75% year-on-year to 52.8 billion KRW, marking stable performance.

Yuhan Corporation's core pipeline Lazertinib is expected to apply for FDA approval within the year as a 3rd/4th line treatment for EGFR non-small cell lung cancer. Additionally, updated results from the CHRYSALIS-2 study are scheduled to be presented at ASCO (American Society of Clinical Oncology) in June, and mid-term results from the Phase 3 monotherapy clinical trial are also anticipated in the second half of the year.

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