[Hidden Market Picks] NeoPharm: Earnings bright on increased dermatologic foray to clinics and China

2017.12.14 16:17:33 | 2018.01.25 11:27:49

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NeoPharm Co.(Kosdaq: 092730), cosmetics maker specializing in sensitive skin care products, expects its top line to benefit from expansion in China and dermatology clinics in Korea, riding on burgeoning demand for cosmeceuticals.

NeoPharm has established its name in the Korean cosmeceutical market under popular names Atopalm, Zeroid, and Real Barrier.

Cosmeceutical refers to special skin care products with a merging of cosmetics and pharmaceutical ingredients. Avene, Bioderma, and Uriage are few of world’s best-known cosmeceutical brands featuring dermatological care products for sensitive skin.

Global cosmeceutical industry has been growing fast and is estimated to reach 81 trillion won ($74 billion) by 2020 from 35 trillion won in 2014. Korean cosmeceutical market is anticipated to more than double from 500 billion won to 1.2 trillion won during the cited period.

It launched self-evident brand Dermatology in October in pricier range to target middle-age consumers through a home shopping network. It also signed an agreement with a Chinese distributor King King Group to sell Real Barrier skin care products in the neighboring market and is getting ready to set up a subsidiary in China. Zeroid sold across the counter at 800 clinics will be added 200 additional ones by the end of the year.

The company is expected to register an operating profit of 12.7 billion won on sales of 52.1 billion won for full 2017. The operating profit is forecast to jump to 17.3 billion won and sales to 66.5 billion won in 2018.

For more information, please contact Park Jae-il, analyst, Taurus Investment & Securities at +82 2 709 2623 or visit Financial Supervisory Service (http://englishdart.fss.or.kr/). Company details and latest quarterly report can be searched under Neopharm or 092730.

Latest trading data is available via Korea Exchange (http://englishdart.fss.or.kr/) under Neopharm or A092730.

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