Pharmaresearch is experiencing a decline in its stock price despite reporting record earnings for the quarter.
According to the Korea Exchange, as of 2:11 PM on August 7, Pharmaresearch's shares were trading at 379,500 won, down 15,000 won (3.80%) from the previous trading day.
The company announced that its consolidated revenue for the second quarter reached 178.7 billion won, with an operating profit of 66.5 billion won. These figures represent increases of 27.1% and 19%, respectively, compared to the same period last year. Net profit rose by 33.7% to 56.2 billion won, and the operating profit margin stood at 37.2%, marking the highest quarterly results in the company's history.
The stable domestic demand for its flagship product, Rejuran, and expansion into the European market contributed to the improved performance. Exports in the second quarter amounted to 84 billion won, a 62% increase from the same period last year, accounting for 47% of total revenue. Medical device exports reached a record high of 32.2 billion won, with growth continuing in established markets such as Japan, Turkey, Australia, and Hong Kong.
The cosmetics division also showed growth, with sales reaching 60.2 billion won, of which exports accounted for 43.6 billion won.
For the first half of the year, cumulative revenue and operating profit were reported at 324.8 billion won and 123.8 billion won, respectively. The company plans to continue its overseas growth in the second half by establishing a local base in France and expanding into the North American market.
However, the market perception is that despite achieving record results, the company has not met already high expectations, leading to profit-taking activities.
* This article has been translated by AI.
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