April 25, 2024

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[THE INVESTOR] Yuhan beat market expectations in the fourth quarter of last year as its businesses grew company-wide, said Daishin Securities on Feb. 22, raising the target price to 280,000 won (US$245.14) from 270,000 won and maintaining and a “buy” recommendation. 

A favorable currency exchange rate resulted in a profit from foreign currency assets, and the dividend from Yuhan Kimberly lifted the net profit, said analyst Seo Geun-heui. 

Its revenue this year might be dragged down by the price cut of its hypertension drug Twynsta, in time for the release of a competing generic version, but will grow as prescriptions for newly introduced drugs, such as anti-diabetic Jardiance and HIV medication Genvoya, increase, forecast the analyst. Seo added that the revenue increase will be able to offset the rise in research and development costs.

NH Investment and Securities agreed that it posted an earnings surprise, boosted by the growth in both ethical and over-the-counter drugs despite the sluggish industry, as well as the steady export of active pharmaceutical ingredients.

The securities firm maintained a “buy” recommendation and a 270,000 won target price. Although its major product Twynsta’s price was cut 30 percent since the expiry of patent in December, the revenue will decline only slightly bolstered by the strong sales capacity and the increase in volume, said analyst Ku Wan-seong.

By Hwang You-mee (glamazon@heraldcorp.com)