One of the more overlooked industries in South Korea is its pharmaceutical sector. But the South Korean drug industry’s size and future prospects means this probably shouldn’t be the case.
The South Korean pharma market is one of Asia’s largest and fastest growing. It should exceed US$24 billion in total value by 2020.
Global economic uncertainty hasn’t affected this sector much due to an aging global population and the simple fact that the world needs healthcare.
Korea will have a higher population density and greater need for long-term care. As a result, the government stepped in to ensure the healthy growth of its pharma industry. Authorities are trying to create a transparent and efficient system to quickly approve drugs.
With all that said, InvestAsian is proud to present Samjin Pharmaceutical (KRX:005500). The business is at the forefront of Korea’s pharmaceutical sector.
Samjin: One of Korea’s Oldest Drug Companies
Established in the early 1970’s, Samjin stock has been through many hard times. But they’ve only made the company stronger.
Samjin provides all that it can to help extend the healthy life of its population. The company aims to “strive for a better future on the basis of human dignity.” They have a great deal of research and development aimed at making advances in the field of medical equipment.
The firm is involved in the research, development, manufacturing, and selling of drugs and medical devices to hospitals and stores. Samjin does business both overseas and domestically and has many patented drugs.
Strong Fundamentals, Impressive Track Record
A company would not be able to survive through thick and thin without having very strong fundamentals.
Samjin will have no problems paying back debt with a current ratio of over 2. The firm’s sales, EPS, and dividend payout have all increased for the past five years.
They’re also one of few businesses in the market expecting a rise in both their net profit and net profit margins. Projecting a margin of 13% from its previous 10%, Samjin stock should have an even better time in today’s economy.
Its performance shows in the returns that it makes for 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 sector. It has a P/E ratio of 13.44 and a dividend yield of 2.39%.
Selling at a steep discount to last year, we rate Samjin stock a buy and recommend it for most people wanting to invest in developed Asian markets.
Want to invest in Korean stocks? You might be interested in our analysis of Leeno Industrial, one of Korea’s most overlooked manufacturing firms.
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