One of the more overlooked industries in South Korea is its pharmaceutical industry. But this should not be the case, especially given the size and future growth aspects of the South Korean pharmaceutical scene.
The South Korean pharmaceutical market is one of the largest in Asia, estimated to be worth US$18.6 billion in 2013 and expected to exceed US$24 billion by 2020. Global economic uncertainty has not affected this industry as much because of an aging global population and the simple fact that the world needs healthcare.
Due to an increase in the prevalence of diseases, a higher need for long-term care and medical devices, an increase in awareness of medical treatments available, and a higher population density, the Korean government has stepped in to ensure the healthy growth of its pharmaceutical industry. By providing regulatory changes, the authorities have worked to make a transparent, strong, and efficient system to facilitate faster approval of drugs and medical devices.
In the forefront of this industry, InvestAsian is proud to present Samjin Pharmaceutical (KRX:005500) to be considered for your investment.
Samjin: One of Korea’s Oldest Drug Companies
Established in the early 1970’s, Samjin has been put through many hard times which have only made the company stronger.
Samjin believes in providing all that it can to help extend the healthy life of its population with the honorable aim of “striving for a better future on the basis of human dignity.” It has a great deal of research and development aimed at making advances in the field of medical equipment.
Samjin is involved in the research, development, manufacturing, marketing, and selling its pharmaceutical products of drugs and medical devices in hospitals and drugstores both overseas and domestically. It has a great deal of patented drugs and a lot more in its R&D pipeline.
Strong Fundamentals and an Impressive Track Record
A company would not be able to survive through thick and thin without having very strong fundamentals. With a current ratio of over 2, Samjin will have no problems paying back debt in the near future. It has also seen a constant increase in its sales, EPS, and dividends paid for the past 5 years.
Samjin is one of the few companies in the market expecting an increase in both their net profit and net profit margins in 2016. Expecting a margin of 13% from its previous 10%, Samjin is looking to have an even better time in today’s economy.
Its performance can also be seen in the returns that it makes for its investors. Coming in on top of all the competition, Samjin boasts an impressive ROI of 15%, ROE of 17%, and an ROA of 10% – not bad for the pharmaceutical industry.
Selling at 25,450 KRW per share, a dramatic fall from its peak less than a year ago, with a P/E ratio of 13.44 and a dividend yield of 2.39%, Samjin is a recommended buy.