Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Foreign investors snapping up Hugel stocks
Hugel is the first Korean company to enter into the Chinese market with Letybo, its botulinum toxin product line. / Courtesy of Hugel
By Anna J. Park
Foreign investors' buying spree of Hugel spurred by earning sales approval in China
By Anna J. Park
Foreign investors have been net purchasing Hugel stocks for 24 consecutive trading days since Oct. 21, over the company's bullish growth outlook in the Chinese market. Hugel is Korea's largest botulinum toxin manufacturer.
They have amassed Hugel shares worth around 127.8 billion won ($114.8 million), raising the stock's price by 13.5 percent from 187,200 won on Oct. 20 to 212,500 won on Nov. 20.
Foreign investors' 24-day buying spree began with Hugel's Oct. 20 announcement that its botulinum toxin product line Letybo received approval from the Chinese government to be sold in the country. The approval came 18 months after the company applied for a sales license there.
With the approval, Hugel has become the first Korean company selling the neurotoxic product used for cosmetic and medical purposes to be granted official sales approval from the Chinese authority.
While the company is already exporting its Letybo products to 27 countries, foreign investors are drawn to its huge growth potential in China. Market watchers expect China's botulinum toxin market to grow to 1.75 trillion won by 2025.
In addition, Hugel has applied for approval to begin sales in Europe in June, partnering with Croma-Pharma. It also plans to apply for permission to sell it in the U.S. in the near future.
The pharmaceutical company has also been showing solid performance as the country's top botulinum toxin provider with the largest market share in Korea. Hugel reported a quarterly revenue and operating profits of 54.1 billion won and 21.1 billion won during the third quarter this year, respectively, which was a 5.7 percent and 16.2 percent increase from the same quarter last year.
Analysts at SK Securities, Shinyoung Securities and NH Investment & Securities raised the company's target stock price to 250,000 won.
“Out of Hugel's third-quarter revenue of 54.1 billion won, 28.2 billion won came from botulinum toxin sales, which has seen a 19 percent year-on-year jump mainly due to an increase in exports to the Asian market. Of that, 17.9 billion won came from filler products, which saw an 8 percent increase from the same quarter last year,” Lee Myoung-sun, bio analyst at Shinyoung Securities, pointed out.
The analyst expects the company will continue to grow, based on the stable revenue increase in the domestic market, as well as an increase in exports, especially to China, where the botulinum toxin market grows about 30 percent annually. The company's Letybo product is expected to hit the Chinese market around March next year.