Kiwoom Securities on the 18th said that for PharmaResearch, exports of related medical devices could be delayed by the Middle East war, but the recent share-price weakness has brought the stock to an attractive level. It lowered its target price to 4.7 million won from 5.8 million won while keeping a "buy" rating. The previous trading day's closing price of PharmaResearch was 3.2 million won.
Kiwoom Securities estimated PharmaResearch's first-quarter sales this year at 144.3 billion won, up 23.4% from a year earlier, and operating profit at 53.3 billion won, up 19.2%.
Domestic medical device sales were at a steady level in January and February, and the steady inflow of foreign tourists brought inbound tourism benefits.
However, the geopolitical risk from the Middle East war is a variable. Shin Min-su, an analyst at Kiwoom Securities, said, "A Saudi Arabia launch and a Dubai event had been scheduled, but the war has newly created the possibility of delays," and "the volume of related medical devices could also decrease."
January shipments to Europe proceeded normally, and with a reorder coming in April, it appears that a larger volume than the initial lot can be shipped in the second quarter of this year.
Shin presented PharmaResearch's sales this year at 646.4 billion won and operating profit at 259.7 billion won. These are increases of 20.7% and 21.2%, respectively, from a year earlier.
Regarding the recent weakness in PharmaResearch's share price, Shin said, "The narrative of a monopoly in the domestic skin booster market has been damaged, leading to valuation derating," and "with the resulting slowdown in growth, the foreign ownership ratio fell to 7.1% now, after peaking at 22.1% on Nov. 2025."
However, with much of the selling volume realized, expectations for a share-price rebound have grown. Shin said, "On a common-share basis, the 12-month forward price-earnings ratio (PER) is 14.7 times, and considering the company's capability to grow 20% going forward, valuation appeal has emerged."
He added, "Competition in the domestic market has intensified, so growth is not as steep as before, but the inbound tourism effect is growing for the Rejuranex pharmaceuticals and cosmetics."