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PharmaResearch |
[Alpha Biz= Reporter Kim Sangjin] On the 11th, Sangsangin Securities raised its target price for PharmaResearch from 230,000 KRW to 300,000 KRW.
Sangsangin Securities noted, "With K-beauty gaining attention and the potential growth of Rejuran Skin Booster and cosmetics in both domestic and international markets, the growth outlook for PharmaResearch has significantly improved following its capital increase. Despite the recent surge in the stock price, there is still room for further upside." The firm adjusted its price-earnings ratio (PER) slightly upward, reflecting the expanded growth potential of the Rejuran brand in global markets, and recommends a buy-and-hold strategy.
The stock's performance is expected to rise further due to positive earnings expectations starting in March 2024, with the current price hovering around 190,000 KRW. Sangsangin also highlighted that despite competition from generic products entering the domestic market, Rejuran sales continue to grow rapidly. The brand’s power has been well-established in the domestic market, and this trend is likely to continue.
Sangsangin further emphasized that Rejuran Skin Booster, the original product commercialized by PharmaResearch, has been limited by the time-consuming process of obtaining FDA approval. However, with the recent capital increase, the timeline for entering advanced markets with FDA approval may be shortened, leading to a potential revaluation of the company's value.
Additionally, the special-purpose company (SPC) established by CVC Capital, Polish Company, is set to participate in PharmaResearch's capital increase, with a subscription date scheduled for December 4th, investing 200 billion KRW.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
