DS Investment Securities analyzed that Hanmi Pharmaceutical is expected to enter a structural recovery phase this year. The target price has been lowered from 440,000 won to 380,000 won, while the investment opinion remains "buy."
Kim Min-sun, a researcher at DS Investment Securities, noted that "although we could not escape poor performance in the second quarter of last year, recent developments, such as Director Im Jong-yun selling his 5% equity to a four-person coalition (Song Young-sook, chairperson of Hanmi Pharmaceutical Group; Im Joo-hyun, vice-chair; Shin Dong-guk, chairman of Hanyang Precision; and Radefangs Partners), are creating an atmosphere to resolve management disputes."
He continued, "After the resolution of management disputes, we plan to focus our efforts on transitioning to a professional management system and normalizing operations," adding that "based on the friendly external environment, including the recent flu outbreak, we expect performance to enter a structural recovery phase starting this year."
DS Investment Securities estimates that Hanmi Pharmaceutical generated 343.6 billion won in revenue and recorded an operating profit of 30.7 billion won in the fourth quarter of last year. This represents declines of 18.7% and 56.2%, respectively, compared to the same period last year. Researcher Kim explained that "the absence of milestones compared to the same period last year acted as a base effect, along with factors such as management instability due to management disputes."
This year, there is also an opinion that expectations for Hanmi Pharmaceutical's new drug development remain valid. Researcher Kim stated that "the clinical phase 1 results of the obesity treatment HM15275 are expected to be announced at the ADA conference in June, and the treatment for congenital hyperinsulinemia HM15136 is scheduled to complete clinical trials in the first half of this year, while the dual agonist for MASH treatment will conclude clinical trials in December of this year."