Pharmaresearch has achieved record sales and operating profit in the second quarter of this year, driven by strong sales of its skin booster, Rejuran, in Europe and an expansion in cosmetic exports. With expectations for continued growth in overseas markets in the second half of the year, the company is seen as enhancing the global competitiveness of K-cosmetics.
According to industry reports, Pharmaresearch's consolidated revenue for the second quarter reached 178.7 billion won, a 27.1% increase compared to the same period last year. Operating profit rose to 66.4 billion won, up 19.0%, while net profit increased by 19.3% to 56.5 billion won. For the first half of the year, cumulative revenue totaled 324.8 billion won, with operating profit at 123.8 billion won, marking the highest performance for a half-year period.
Notably, the increase in overseas sales is significant. Pharmaresearch's exports in the second quarter amounted to 84.0 billion won, a 62% rise from the previous year, accounting for 47% of total revenue. By segment, medical device sales reached 96.6 billion won (64.4 billion won domestically and 32.1 billion won in exports), while cosmetic sales surged by 95.5% to 60.1 billion won. Cosmetic exports alone increased by 123.6% to 43.5 billion won, with sales in the Americas growing by 204% to 16.6 billion won, driving this growth.
Sales of Rejuran have seen substantial growth in Europe and Oceania. The share of medical device exports to Europe and Oceania rose from 27% in the second quarter of last year to 39% this year, while the share to Asia decreased from 70% to 55%. Currently, Rejuran is approved for sale in 52 countries worldwide.
Cosmetic exports have surged, particularly in the U.S. and Asia. In the second quarter, the regional breakdown of overseas cosmetic sales was 45% in Asia, 38% in the Americas, and 16% in Europe. The success of Amazon's Prime Day and the entry into Sephora, along with the expansion of online and offline distribution channels in Southeast Asia, including Shopee and TikTok Shop, have been credited for this growth.
Market analysts believe that Pharmaresearch will continue to expand its business leveraging the brand recognition of Rejuran, contributing to the ongoing success of K-cosmetics. Expectations are high for continued export growth, particularly in Europe and the U.S., in the third quarter.
In light of the strong performance, securities firms have been raising their target prices for Pharmaresearch. Samsung Securities increased its target price from 420,000 won to 500,000 won, an increase of 19.0%. Shinhan Investment Corp. raised its target from 430,000 won to 510,000 won, an 18.6% increase. IBK Investment & Securities raised its target from 500,000 won to 530,000 won, while Kiwoom Securities increased its target from 510,000 won to 520,000 won. The average target price set by securities firms is 508,000 won, indicating a potential upside of over 20% from the current stock price.
IBK Investment & Securities forecasts that operating profit for the third quarter will reach 70.7 billion won, a 14% increase from the previous year. Analyst Jo Eun-ae noted, "Foreign dermatology consumption reached an all-time high in the second quarter, benefiting Pharmaresearch significantly. The cosmetic export growth, particularly in the Americas, with sales of 16.6 billion won, reflects the success of Amazon's Prime Day and the impact of entering Sephora." She added, "We expect continued growth in revenue and profit in the third quarter, raising optimism about the sustainability of export growth."
* This article has been translated by AI.
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