[Click eStock] "Rejuran Cosmetics to Be New Growth Pillar" Sangsangin Securities Raises Target Price for Pharma Research

Sangsangin Securities Raises Target Price from 5.4 Million Won to 6.1 Million Won

Sangsangin Securities has raised its target price for Pharma Research from 5.4 million won to 6.1 million won, driven by the outlook that Rejuran cosmetics will emerge as a new pillar for performance growth.

On August 27, Sangsangin Securities stated in its corporate analysis report on Pharma Research, "We expect the stock’s recovery trend to continue beyond September 2026." The new target price of 6.1 million won reflects a 38% additional upside potential compared to the previous day's closing price of 4.42 million won. The share price of Pharma Research, which started the year in the 5.6 million won range, fell to the 2.5 million won range by mid-June, but has since shown signs of recovery.

Tae-ki Ha, a researcher at Sangsangin Securities, cited the stable growth potential of the medical device Rejuran as the main basis for the anticipated continued recovery in share price. He commented, "Although the growth rate of Rejuran’s domestic sales is expected to slow, rapid expansion in exports will allow total medical device Rejuran sales to grow steadily." He evaluated that "the growth potential of Rejuran remains intact."

He also projected that the increase in cosmetics exports would drive enterprise-wide sales growth for Pharma Research. He explained that the stock price should reflect the growth potential of the cosmetics segment in the global market.

Ha added, "While strong growth for Rejuran cosmetics is likely to continue domestically, the rate of expansion is expected to be even greater in the much larger overseas markets." He further anticipated, "A new phase could unfold in which rapid growth, particularly centered on the U.S. market, propels total company sales." He added, "Although the operating margin of the cosmetics segment is somewhat lower than that of medical devices and the overall operating margin may therefore be revised downward, the absolute size of operating profit will grow rapidly, driven by strong export-led sales growth."

He also noted that, as the second half of the year is characterized by high uncertainty in macroeconomic factors such as interest rates, Pharma Research could attract greater attention by comparison. In particular, during periods of uncertainty, Pharma Research’s strong cash generation and ample cash assets were highlighted as positive factors for corporate valuation. Ha concluded, "As the Rejuran brand strengthens its global competitiveness in the medical device segment, the growth potential of cosmetics exports will be reassessed. The company is likely to attract relatively stronger interest in the stock market through the end of the year, and there still appears to be significant momentum for further share price gains."

This content was produced with the assistance of AI translation services.