Hana Securities said Wednesday it expects PharmaResearch’s medical-device exports to rebound after bottoming out in the first quarter, while both domestic and overseas cosmetics sales post strong growth. The brokerage maintained its 480,000-won target price and “buy” rating.
In a report, analyst Kim Da-hye said the first quarter likely marked the low point for the year due to softer demand in China and Japan and shipping disruptions in the Middle East. She added that demand adjustments tied to tighter Chinese regulations were already reflected in the company’s business plan, and that Middle East growth targets were conservative and should not affect whether guidance is met.
Kim said additional shipments to European distributor VIVACY were proceeding as planned, reaching a cumulative 6 billion won in April and projected to total about 12 billion won for the year. She estimated cosmetics domestic sales at 12.4 billion won, up 17% from a year earlier, and exports at 25.5 billion won, up 48%.
She said Rejuran Cosmetics entered about 400 Sephora offline stores in the United States and China in March and signed a distribution agreement with Silicon2. She cited participation in a Coachella booth in April and a European pop-up event in May as factors supporting expectations for strong cosmetics export growth this year through increased consumer exposure.
Kim said competition from ECM skin boosters is likely to split demand among domestic consumers, but argued Rejuran could recover its valuation multiple because it is the only product among polynucleotide, or PN, injectables. She said ECM skin boosters face intensifying competition, while Rejuran holds a dominant position in PN injectables.
She said that, as PharmaResearch recovered its multiple during the high-growth period of Juvelook, differences in efficacy stemming from a different mechanism than ECM skin boosters could support Rejuran regaining ground. She forecast this year’s revenue at 666.5 billion won, up 24% from a year earlier, and operating profit at 274.3 billion won, up 27%.
* This article has been translated by AI.
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