April 27, 2024

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[THE INVESTOR] Daewoong Pharmaceutical was slower than expected in the fourth quarter last year but will show steady growth this year, said Shinhan Investment on Feb. 21, raising the target price to 182,000 won (US$169.46) from 170,000 won.

Its revenue in the period stood at 213.6 billion won, merely 0.2 percent higher than the previous year, and operating profit missed market expectations at 21.2 billion won, up 15.8 percent on-year, said analyst Bae Gi-dal.

Despite the rise in revenue on the back of improving sales of its flagship liver drug Ursa and anticoagulant Lixiana, exports were down 16.6 percent, dragged down by unfavorable won-dollar exchange rate and reshuffling of underperforming drugs, explained the analyst. 

Its revenue this year will increase 7 percent on-year to 927.2 billion won and operating profit by 18.7 percent to 53 billion won, as both domestic sales and exports will grow solidly, forecast Bae. The value of its stake in subsidiary Hanol Biopharma will rise as well and approvals to enter the US market are pending, he added.

The pharmaceutical company’s price-earnings ratio is 53.4 times, higher than its rivals Medytox (40 times) and Hugel (28.3 times), noted the analyst maintaining a “trading buy.”

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