[Alpha Biz= Paul Lee] Sangsangin Securities reiterated its ‘Buy’ rating and ₩330,000 target price for Pharmaserch, forecasting continued high growth driven by the RiJuran brand in 2024.
The firm highlighted RiJuran’s competitive edge, noting that both domestic and international sales have been growing robustly. Despite concerns over a potential decline in medical tourism demand for RiJuran late last year, these fears have not materialized.
Sangsangin Securities also expressed optimism about Pharmaserch’s European export prospects, which are expected to gain momentum in the second half of the year, particularly with the backing of global private equity firm CVC. This could potentially push the company’s stock price to new heights.
The firm estimated that Pharmaserch’s stock is trading at a relatively low price-to-earnings ratio (P/E) of around 21x based on 2024 earnings, suggesting that it remains undervalued given its strong revenue growth potential.
The brokerage recommended a long-term investment horizon, suggesting that the ‘Buy and Hold’ strategy remains valid for this year.
For Q4 2023, Pharmaserch reported sales of ₩1.026 trillion and operating profit of ₩33.6 billion, marking a year-over-year increase of 46.7% and 64.9%, respectively.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
