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Daewoong Pharmaceutical. (Photo= Daewoong Pharmaceutical) |
[Alpha Biz= Paul Lee] SK Securities has reiterated its ‘Buy’ rating on Daewoong Pharmaceutical, maintaining a target price of ₩210,000, citing improved profitability alongside revenue growth and strong R&D momentum.
On February 11, the firm projected Daewoong’s 2025 consolidated revenue to rise by 8.1% year-over-year to ₩1.5378 trillion, with operating profit expected to increase by 14.8% to ₩169.8 billion.
The brokerage highlighted Daewoong’s key high-margin products—Fexuclu (₩124.7 billion, +28.3% YoY) and Nabota (₩225.3 billion, +20.9% YoY)—as primary growth drivers, ensuring continued profitability improvements. The company anticipates Fexuclu’s approval for commercialization in China in the first half of this year and Nabota’s approval within the year, with a technology export deal expected post-approval.
Additionally, SK Securities noted that by 2025, uncertainties related to a tax audit conducted in 2024 will be resolved, allowing greater focus on Daewoong’s core business and Chinese market expansion. The firm also pointed to a key research catalyst in April, when Daewoong is set to present preclinical results for two anti-cancer candidates at the American Association for Cancer Research (AACR) annual meeting.
Daewoong continued to deliver strong earnings in 2023, with Q4 revenue reaching ₩367.9 billion (+1.7% YoY) and operating profit at ₩38.7 billion (+35.1% YoY), in line with market expectations. The company also achieved record annual earnings for the fourth consecutive year, with full-year revenue of ₩1.4227 trillion (+3.4% YoY) and operating profit of ₩148 billion (+20.7% YoY).
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
