Pharmaresearch is accelerating overseas market expansion based on its competitive strength in the domestic Rejuran market. Samsung Securities forecasts the company's Q2 revenue will reach 172.5 billion won, up 22.6% year-over-year, and operating profit will increase 25.3% to 70 billion won, exceeding market expectations. The growth is driven by sustained domestic demand from medical tourism, increased Rejuran medical device exports centered on Japan and Europe, and cosmetics business expansion into the US and Eastern Europe. Samsung Securities maintained a 'buy' rating and raised the target price to 420,000 won.
Samsung Securities Forecasts Q2 Revenue at 172.5 Billion Won
Samsung Securities projects Pharmaresearch's Q2 revenue at 172.5 billion won, representing a 22.6% increase compared to the same period last year. Operating profit is expected to reach 70 billion won, up 25.3% year-over-year. Jung Dong-hee, a Samsung Securities researcher, stated that domestic Rejuran market share defense continues thanks to favorable medical tourism and marketing effects, while medical device and cosmetics export expansion is driving earnings growth.
Medical Tourism Drives Domestic Growth with Foreign Dermatology Spending Up 39%
Pharmaresearch's domestic medical device business is benefiting from increased foreign patient numbers. Foreign tourist spending on dermatology in Q2 is estimated at approximately 428 billion won, up 39% from the same period last year. The company's domestic medical device revenue is expected to reach 63.7 billion won, a 5% increase year-over-year. Despite intensifying competition in the domestic aesthetic market, the company maintains stable growth through expanded supply to hospital and clinic channels serving foreign patients.
Europe Export Expansion with Western Europe Shipments Reaching 3.4 Million Dollars
Export expansion in the European market is notable. As the Japanese market shows recovery and Western Europe-bound Rejuran medical device shipments begin in earnest, Q2 medical device exports are projected at 32.9 billion won, up 35.5% year-over-year. In Western Europe specifically, orders beyond initial volumes continue. The company is estimated to have shipped approximately 3.4 million dollars to Western Europe in Q2, significantly higher than 1.4 million dollars in Q1. Jung noted that as Asia and Eastern Europe markets maintain solid growth and Western Europe shows initial results, the export ratio is rapidly expanding and will exceed 40%, reducing earnings volatility.
Cosmetics Business Grows 73.9% with Sephora and Amazon Effects
The cosmetics business is establishing itself as a central pillar of overseas expansion. In the US market, the effect of Sephora entry in late March will be fully reflected starting Q2, and Amazon Prime Day event performance will also contribute to revenue growth. Q2 cosmetics export revenue is expected to reach 33.9 billion won, up 73.9% year-over-year. Despite concentrated event and marketing costs in the quarter, operating leverage effects from revenue growth will expand the operating margin to approximately 40.6%.
Pharmaresearch Acquires Cosmetic Group USA for Local Production
Pharmaresearch moved to establish a local production system for US market expansion. On the 1st, the company acquired 100% equity in Cosmetic Group USA, a Los Angeles-based cosmetics OEM/ODM company, creating a structure to perform production through finished product processes locally for US sales. Previously, products manufactured in Korea were transported to the US, but local production is expected to reduce logistics costs and improve supply efficiency. The company plans to start local production as early as late this year. Jung forecasted that the current cosmetics export gross margin of approximately 60% could see additional profitability improvements once US local production conversion is completed.
Company Plans November Launch of Microneedle RF Device
New medical device launches are cited as growth momentum. Pharmaresearch plans to elevate Rejuran business competitiveness through a microneedle RF device scheduled for domestic launch in November. The device applies a dedicated injector that can reduce residual loss of high-viscosity Rejuran products compared to existing equipment, lowering cost burden for hospitals and clinics while improving treatment efficiency.
FAQ
What is Samsung Securities' forecast for Pharmaresearch's Q2 operating profit?
Samsung Securities forecasts Pharmaresearch's Q2 operating profit at 70 billion won, representing a 25.3% increase compared to the same period last year.
How much did foreign patient spending on dermatology increase in Q2?
Foreign patient spending on dermatology in Q2 is estimated at approximately 428 billion won, up 39% from the same period last year.
When did Pharmaresearch acquire Cosmetic Group USA?
Pharmaresearch acquired 100% equity in Cosmetic Group USA, a Los Angeles-based cosmetics OEM/ODM company, on the 1st.
