Kiwoom Securities analyzed on the 11th that foreign special effects are expected to be maintained since visa-free entry for Chinese group tourists will be temporarily applied starting next month. It maintained a buy investment opinion and raised the target stock price from the previous 700,000 won by 15.7% to 810,000 won. The closing price of PharmaResearch on the previous trading day was 664,000 won.
PharmaResearch's revenue for the second quarter of this year increased by 69.2% compared to the same period last year, reaching 140.6 billion won. The operating profit recorded 55.9 billion won, up 81.7% from the same period last year, surpassing both revenue and operating profit consensus (market expectations).
Shin Min-su, a researcher at Kiwoom Securities, said, "The gross profit margin has reached a record high of 76.2% since the establishment of the corporation, as the revenue share of the most profitable Rejuran is rising, creating a leverage effect."
It was also reported that selling and administrative expenses included 4 billion won for TV advertising and 4 billion won for domestic and international online and offline marketing, with an operating profit margin of 39.7%, representing the second highest level in history.
Shin noted, "Thanks to the trend of adopting Rejuran as a basic procedure regardless of which beauty treatment is received, we were able to absorb a significant demand for foreign medical tourism," and said, "From Sept. 29, visa-free entry for Chinese group tourists will be temporarily applied until June next year, and we believe that foreign special effects will be maintained."
He analyzed that all three major indicators are continuing a solid trend. The three major indicators mentioned by Shin are the Google Trends Index, customs export data, and foreign medical tourism consumption.
Shin remarked, "Business-wise, there is room for steady growth in performance scale through the operation of Rejuran Class 3 medical device business in Hainan special zone and the shipment of initial quantities after signing contracts with European partners in the third quarter," adding, "Qualitative factors such as expectations for MSCI index inclusion due to market capitalization growth are also valid, and we can consider inorganic growth strategies through M&A."