GC WellBeing Anticipates Strong Market Penetration in China with Placental Injections and Fillers
DS Investment Securities: "Stock Price Expected to Rise with Expanded Sales in China"
Analysts predict that GC WellBeing Corporation will see a stable increase in sales and a rise in stock prices in the second half of the year, driven by their performance in the Chinese market.
On the 19th, Ahn Joo-won, a researcher at DS Investment Securities, released a report estimating GC WellBeing Corporation's Q2 sales at 34.4 billion KRW (approx. 27 million USD) and operating profit at 3.6 billion KRW (approx. 2.8 million USD). These figures represent growth of 13.9% and 27.4%, respectively, compared to the same period last year.
GC WellBeing Corporation's sales are overwhelmingly driven by injectables, with expected Q2 sales of injectables at 27.7 billion KRW (approx. 21.8 million USD), accounting for about 80% of total sales. Notably, their placental injection 'Laennec' is a leading product with a dominant market share in Korea.
The company aims to secure approval for Laennec in China within the year. Entering the Chinese market is likely to result in a significant 'quantum leap' in sales, as there are currently no officially approved placental injections in the Chinese medical market. GC WellBeing Corporation expects Laennec, which has already demonstrated strong product competitiveness in Korea, to quickly penetrate the Chinese market, where there are no established competitors.
Synergies with local partners are also anticipated. GC WellBeing Corporation currently sells hyaluronic acid fillers in China through partnerships with companies like Yooyoung Pharmaceutical, and recently signed a contract with Huarun Pharmaceutical Group to distribute blood products such as 'Albumin' and hemophilia treatment 'GreenGene F' in China.
Researcher Ahn noted, “The annual sales generated through Yooyoung Pharmaceutical are expected to be about 5 billion KRW (approx. 3.9 million USD). With the addition of Huarun Pharmaceutical's sales, the estimated sales of fillers in China alone are projected to reach 7-8 billion KRW (approx. 5.5-6.3 million USD) this year.” He added, “With potential sales reaching the high 10 billion KRW (approx. 7.8 million USD) range next year, sales in China will be a growth engine for GC WellBeing Corporation.”
Additionally, to meet the growing demand for injectables, GC WellBeing Corporation recently upgraded its production facilities. The new plant in Eumseong, Chungbuk, completed in 2021, has an annual production capacity of 66 million ampoules and vial injectable products.
Researcher Ahn analyzed, “With the new plant, GC WellBeing Corporation's production capacity has increased from the previous 80-90 billion KRW (approx. 62-70 million USD) to a maximum of 700 billion KRW (approx. 544 million USD). The factory's operation will enable cost improvements, predicting solid growth annually.”
Accordingly, DS Investment Securities raised GC WellBeing Corporation's target stock price to 11,000 KRW (approx. 8.6 USD) and maintained a buy recommendation.