[THE INVESTOR] Medytox missed third-quarter earnings expectations, said Samsung Securities on Nov. 15 lowering the target price to 710,000 won (US$627.37) from 830,000 won.

Its revenue in the period increased 20 percent on-year to 48.2 billion won and operating profit by 13 percent to 19.2 billion won. Net profit rose 11 percent to 14.7 billion won. Gross profit margin improved slower than expected while costs including those for a lawsuit and allowance for bad debts increased. However, gross profit margin will rise in tandem when sales recover as it enters the peak season for botulinum toxin in the fourth quarter, said analyst Park Won-yong. 

Data indicates that exports of botulinum toxin will recover, but expectations for exports to China, for unofficial sales, next year is lowering. Its 2019 earnings will rebound as it is expected to officially enter China in the latter half next year and will be able to expand fast, noted the analyst maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)