KB Securities said on the 19th that Hugel, a Korean toxin company that has entered all of the global Big 4 toxin markets, is expected to accelerate its entry into the U.S. market, leading to topline growth and improved profitability. It initiated coverage with a Buy rating and a target price of 400,000 won, and named it its top pick in the sector. The previous session's closing price was 251,000 won.
KB Securities projected that Hugel will deliver earnings growth on the back of accelerated penetration into the U.S. market, securing a competitive edge from its earlier entry into the United States, China, Europe and Brazil, and portfolio diversification.
Researcher Son Min-young at KB Securities said, "After winning FDA approval in 2024, it achieved a 3% share of the U.S. aesthetic toxin market within nine months of launch through its partnership with Benev," and added, "Starting in the second half of this year, the company plans to run direct sales in parallel, and the direct-sales ASP is about 8 to 10 times higher than the domestic ASP, so U.S.-bound sales growth is expected to accelerate."
Son explained that Hugel, which has entered the United States, China, Europe and Brazil, has secured a powerful competitive edge by obtaining product approvals in the United States and China, where procedures are stringent.
Son said, "In China, as the only K-toxin company holding approval for 50 units, it is estimated to have achieved a 22% market share last year based on a mid- to high-price positioning," and added, "It is also benefiting from the one-person, one-vial policy."
Son also analyzed that Hugel is actively responding to the high-growth skin booster market.
Son said, "In the second half of this year, the company will begin domestic sales of CellDM, based on extracellular matrix (ECM), and it has also secured co-development of next-generation skin boosters using human-derived collagen with U.S. biotech GelatTech and exclusive global licensing rights."