April 16, 2024

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[THE INVESTOR] Hugel’s second-quarter earnings will advance from the previous quarter, said NH Investment and Securities on July 2, maintaining a “buy” recommendation and target price of 690,000 won (US$618). 

It will maintain upward momentum, and revenue in the period will reach 47.4 billion won and operating profit 23.2 billion won, estimated analyst Koo Wan-seong.

Its current stock price is gravely undervalued at 24.8 times its price-earnings ratio, and earnings in the latter half will improve significantly as exports to Brazil and Russia pick up in earnest and domestic sales normalize, said the analyst. 

Its drug-developer affiliate Olix Pharma is planning to go public in the second half of the year, boosting Hugel’s stake value and highlighting the value of ribonucleic acid for novel drugs, according to Koo. Global clinical trials for toxins will serve to push momentum as well, he added. 

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