Alphabiz - Kyobo Securities Maintains ‘Buy’ on Hanmi Pharm, Citing Solid Growth Outlook Despite Weak Q1

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[Alpha Biz= Ellie Kim] Kyobo Securities maintained a “Buy” rating and a target price of KRW 700,000 on Hanmi Pharmaceutical, stating that while the company posted weaker-than-expected first-quarter earnings, its full-year growth targets and R&D momentum remain intact.

In a report released on May 7, Kyobo Securities attributed the earnings shortfall largely to the absence of sample supply to its U.S. partner Merck & Co. (MSD), which had boosted the previous quarter’s results. Although prescriptions for key in-house products continued to expand, seasonal weakness at Beijing Hanmi and increased global obesity clinical trial costs weighed on consolidated operating profit.

Hanmi Pharm reported first-quarter consolidated revenue of KRW 392.9 billion, up 0.5% year-on-year. Operating profit declined 8.8% to KRW 53.6 billion, with an operating margin of 13.7%, falling short of market expectations.

Despite the soft quarterly performance, Kyobo Securities highlighted that Hanmi Pharm is maintaining its annual targets, including over 10% revenue growth, an operating margin above 15%, and at least one licensing-out deal within the year.

The fine chemicals division was cited as a key driver of profitability improvement, as the company shifts toward higher-margin CDMO (contract development and manufacturing organization) operations.

Obesity treatments are also expected to be a major growth catalyst. Hanmi Pharm plans to launch its GLP-1-based obesity drug efpeglenatide within the year, targeting first-year sales of KRW 100 billion. Kyobo Securities estimates the domestic obesity treatment market at around KRW 700 billion, projecting meaningful earnings contributions following the launch.

R&D developments were identified as a potential trigger for a share price rebound. While Phase 2 results for the MASH (metabolic dysfunction-associated steatohepatitis) treatment efinopegdutide were expected to be presented at conferences such as EASL in the first half, they were not included in the presentation schedule. The brokerage now expects a potential presentation by MSD in the second half.

Hanmi Pharm’s stock has recently traded sideways amid broader weakness in the pharmaceutical and biotech sector and a lack of near-term R&D catalysts. However, Kyobo Securities believes that confirmation of MASH clinical data and potential licensing deals for its obesity pipeline could drive a rebound.

Analyst Jung Hee-ryeong noted that the release of efinopegdutide data could also boost expectations for another internally developed Phase 2 triple-agonist MASH candidate, efocipegtrutide, with data expected in the second half of the year.

She added that HM17321, a UCN2-based obesity treatment currently in Phase 1 trials, is scheduled to present preclinical data at ADA 2026, highlighting its potential as a first-in-class candidate with strong licensing-out prospects.

Hanmi Pharm shares, which closed down 2.36% at KRW 430,500 on May 6, were trading up 0.92% at KRW 438,500 as of 9:13 a.m. on May 7.

Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)