April 17, 2024

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[THE INVESTOR] Yuhan will be able to pick up from the third quarter, said Hana Financial Investment on Sept. 14, maintaining a “buy” recommendation and 310,000 won (US$276.46) target price.

Investors have turned away from the pharmaceutical company as it has posted disappointing earnings for four consecutive quarters until end-March. In the second quarter, operating profit fell approximately 20 percent on-year on a consolidated basis, but on a standalone basis increased by 23 percent. Its wholly owned subsidiary Yuhan Chemical’s operating loss, from depreciation cost rise, hampered its earnings. However, as it’s subsidairy is expected to turn around in the third quarter, so will Yuhan, said analyst Seon Min-jeong.

Unless its earnings drop significantly, its stock price will maintain an upward momentum from the expectations for clinical trial results of its cancer treatment candidate and the possibility of out-licensing, she added. 

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