April 25, 2024

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[THE INVESTOR] Hanmi Pharmaceutical’s second-quarter earnings will be below expectations, said NH Investment and Securities on July 3, lowering the target price to 530,000 won (US$472) from 570,000 won.

Its revenue in the period will rise 9.1 percent on-year to 243.1 billion won while operating profits will decline 15.8 percent to 18.1 billion won, 8.6 percent lower than market consensus, said analyst Koo Wan-seong.

Its revenue on a standalone basis will come in at 183.1 billion won and operating profits at 13.2 billion won, estimated the analyst, adding that sales of Rosuzet will reach 9.5 billion won as rival drug Atozet remains out of stock. 

Hanmi Pharmaceutical’s Beijing operation will slow down slightly due to the low season with 57.1 billion won revenue, while Hanmi Fine Chem will come out of a stagnation following a product reshuffle and begin to improve from next year, said Koo. 

Although the target price has been adjusted, research and development momentum in the latter half should also be considered, noted the analyst, maintaining a “buy” recommendation. 

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