[Infostock Daily= Reporter An Hoe Hyun] Shinhan Investment said on the 14th that Dong Kook Pharmaceutical showed good results despite a one-off cost increase in 2Q, and that it expects earnings to continue to grow in the second-half. We maintain 'BUY' investment opinion and raise our target stock price to 190,000 won.
Dong Kook Pharmaceutical's consolidated sales in 2Q increased 15% year-on-year to 138.8 billion won and operating profit increased 21.9% year-on-year to 18.2 billion won.
Shinhan Investment said that Dong Koouk Pharmaceutical is expected to see positive results in the second half of the year thanks to an increase in OTC sales due to an increase in Insadol price, the entry of cosmetics brand 'Centellian 24' into the Chinese market, and strong sales of new products.
Insadol is the main item that accounts for about 50% of Dong Koouk Pharmaceutical's OTC sales, and sales are expected to increase by 7% from August. Centellian 24 predicted that strong sales of the new product 'Mela Capture Ampoule' and the effect of entering China will start in earnest from the second half of the year.
Shinhan Investment analyzed that Dong Kook Pharmaceutical's attractiveness is still high as it is expected to add favorable supply and demand due to stock splits and major momentum such as OTC and cosmetics in the second half of the year.
Reporter An Hoe Hyun ahh@infostock.co.kr
