Kiwoom Securities estimated on the 7th that Hugel (KOSPI: 145020), a South Korean aesthetics biotech company, will exceed market consensus for both revenue and operating profit in the second quarter of 2026, by 5% and 4% respectively.
In a research note published that day, analyst Shin Min-su projected Hugel's Q2 revenue at 133 billion won, up 20.6% year on year, with operating profit of 52.9 billion won, down 6.6% year on year, implying an operating margin of 39.8%.
By product line, botulinum toxin sales are forecast at 73.7 billion won, a 21.4% year-on-year increase. Export revenues are expected to reach 53.5 billion won, up 26.8% year on year, while domestic sales are projected at 20.2 billion won, a 6.1% rise. The analyst attributed the domestic improvement to a volume-discount pricing policy introduced in the second half of 2025, which appears to be gaining traction in the home market.
Dermal filler revenues are estimated at 36.8 billion won, up 8.0% year on year, comprising 30.5 billion won from exports and 6.3 billion won from domestic sales.
The operating margin of 39.8% is expected to represent a quarterly trough, weighed down by non-commercial batch costs at the company's third manufacturing facility and selling, general and administrative expenses deferred from the first quarter. Margins are forecast to recover in the second half of the year as these one-off costs dissipate.
On the subject of Hugel's planned direct sales operation in the United States, the analyst noted that IT system testing has been completed and that recruitment of executives, team leaders and operational staff is proceeding faster than initially anticipated. The company expects to commence commercial sales activity in the American market from the second half of 2026.
Kiwoom Securities maintained its target price of 380,000 won, derived by applying a target price-to-earnings ratio of 25 times to its 2026 full-year earnings-per-share forecast of 15,539 won. Based on the closing price of 245,500 won on 6th July, this implies upside potential of 54.8%. The brokerage reiterated its "Buy" recommendation.