- We expect 1Q18 results to be in line with market expectations as outpatient prescription growth is offset by slower API exports. On a parent basis, we expect Yuhan Corp to report KRW359.5bn in sales (+2.9% YoY, -3.7% QoQ) and KRW23.7bn in operating profit (-14.4%, +70.9% QoQ) on a 6.6% operating margin.
- We maintain BUY as we see its key pipelines reviving out-licensing momentum in the mid to long term.
- The stock trades at discounts to larger pharmas. Given the potential of the successful development of an original drug for lung cancer, we raise our target multiple to revise up our target price from KRW260,000
to KRW300,000.
Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc.
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