Daol Investment Securities announced on June 25 that it expects PharmaResearch to exceed market expectations with strong sales growth, raising its target price to 540,000 won while maintaining a "buy" rating.
Park Jong-hyun, a researcher at Daol Investment Securities, stated in a report that "investments in branding and marketing for Rejuran have led to growth in the cosmetics sector."
He noted that spending in dermatology for medical tourism reached 140.8 billion won in April and 145.2 billion won in May, marking year-on-year increases of 63% and 86%, respectively, setting new records. Park added that the upward trend in dermatology spending, driven by inbound tourism and domestic asset effects, is expected to continue.
Despite concerns about increased competition, Park highlighted that PharmaResearch maintained its market share. He reported that sales growth is expanding, with medical device exports reaching 26.7 billion won, a 10% increase year-on-year and a 26% increase quarter-on-quarter, indicating improved performance due to expansion in European markets.
He also pointed out that the increase in business-to-consumer (B2C) sales from inbound tourism and growth in health and beauty (H&B) channel sales contributed to the company's performance. Park anticipates that sales growth will be supported by the expansion into U.S. and Chinese Sephora channels, alongside increasing sales in Southeast Asia and Eastern Europe.
While he expects a slight decline in operating profit margin due to marketing investments, he remains optimistic about recovery through operational leverage.
* This article has been translated by AI.
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