[Infostock Daily=Reporter Lee Ji-sun] IBK Investment & Securities presents an investment opinion of 'Buy' and kept the price target of 23,000 won for Daewon Pharmaceutical on 3rd.
Daewon Pharmaceutical has a stable portfolio of items based on professional medicine and its business is stable enough to pay a 1.0 to 1.7% market dividend every year.
Although earnings growth slowed down due to COVID-19 in 2020, the company is expected to recover the growth of 2019, and the impact of the new plant in Jincheon is expected to amplify gradually.
The new plant in Jincheon is expected to reduce costs with increased production volume by establishing smart automation production lines.
The annual profit is getting accumulated and the total capital is increasing proportionately. As such, enterprise value is expected to recover the 5-year average PBR of 2.1X.
Reporter Lee Ji-sun stockmk2020@gmail.com
