On the 14th, Kiwoom Securities projected that PharmaResearch, a beauty device company leading the boom of the skin booster 'Rejuran,' still has potential for further growth. Consequently, it maintained the investment recommendation of 'buy' and raised the target price to 490,000 won, a 22.5% increase. In the previous transaction, PharmaResearch closed at 398,000 won.
PharmaResearch's revenue for the first quarter of this year was 116.9 billion won, a 56.5% increase compared to the same period last year, and its operating profit recorded 44.7 billion won, an increase of 67.7%. Notably, since the fourth quarter of 2022, the revenue has continued to show growth compared to the previous quarter. Selling and administrative expenses were also managed well, with the operating profit margin reaching the highest ever at 38.3%.
Shin Min-soo, a researcher at Kiwoom Securities, noted, 'The demand for Rejuran among Koreans is increasing in Korea, and there is also a benefit from foreign medical tourists,' adding that 'the number of procedures is steadily increasing in countries where Rejuran has been launched in the Asia region, and it is remarkable that more than double the growth compared to the same period last year was achieved before finding European sales partners.'
He added, 'The domestic duty-free shops and Olive Young channels for cosmetics have performed well, and the penetration of the U.S. procedure cosmetics 'Rejuran' is progressing rapidly.'
The researcher raised the target price earnings ratio (PER) used in the target price calculation from the previous 30 times to 33 times, a 10% increase. He said, 'Indicators that can track the flow of consumer goods, such as Google Trends, have not declined,' adding, 'The business environment is good, and individual corporations also have strong brand power that is unlikely to be shaken.'