Korea Investment & Securities noted on the 27th that PharmaResearch is poised to ramp up its entry into advanced markets, with export total addressable market (TAM) expected to expand rapidly. It maintained a 'buy' investment opinion and raised the target price by 15% to 380,000 won. The closing price of PharmaResearch shares the previous day was 337,500 won.
PharmaResearch will launch Rejuran in major European countries this year and enhance marketing for Rejuran cosmetics targeting U.S. medical spas, officially ramping up entry into key markets. The global filler and skin booster market size is estimated to exceed 6 trillion won, with the U.S. and Europe each accounting for over 30% and 25%, respectively.
Kang Si-on, a researcher at Korea Investment & Securities, said, 'The differentiated growth trend of skin boosters is being confirmed, and the market environment for skin boosters is also positive,' adding, 'The high return on investment (ROI) of Rejuran is favorable for market share expansion.'
The export price of Rejuran is not significantly different from that in Korea, but the overseas service cost can be 2 to 4 times higher depending on the region. Research Institute Kang noted, 'Nevertheless, the price burden on consumers compared to existing treatments remains low, and it provides sufficient margins to service providers, which will favor market penetration,' and analyzed that 'the appointment of Son Ji-hoon, former CEO of HUGEL, who has high expertise in overseas business, also raises expectations for global expansion.'
'Estimated at 15% to 20% of domestic Rejuran sales, foreign demand from visitors to Korea has expanded from primarily Chinese customers to include Japanese and Southeast Asian nationalities. Furthermore, foreign medical expenditure reached 1.244 trillion won last year, growing 2.1 times compared to the previous year, with the proportion of expenditure on dermatology rising rapidly from 11% in November 2022 to 22% in 2023 and 49% last year.'
Research Institute Kang stated, 'The expansion of export TAM has increased the potential for performance growth,' adding that 'regarding earnings per share (EPS), there is high additional upward potential as we reflected revenue from European and U.S. energy-based devices (EBD).'
'He further analyzed that market volatility may occur if quarterly results fall below consensus or if export indicators weaken, but should be seen as a buying opportunity during corrections.'