1. Hitech Pharm’s Q2 2025 Performance: What Happened?

Hitech Pharm reported revenue of KRW 23 billion, operating profit of KRW 3.2 billion, and net income of KRW 2.3 billion for Q2 2025, significantly exceeding market expectations. This represents a substantial growth compared to Q1 2025 (revenue KRW 15.3 billion, operating profit KRW 2.6 billion, and net income KRW 2.2 billion).

2. Reasons Behind the Strong Performance: Why?

This strong performance is attributed to robust fundamentals and enhanced competitiveness in its core business.

  • Core Business Strength: Hitech Pharm’s leading position in Carbapenem API, characterized by high antibacterial activity and competitive pricing, drove stable revenue growth.
  • Global Market Expansion: Building upon its strong presence in the European market (89.23% export share), Hitech Pharm is actively expanding into regulated markets in Asia and North America.
  • Technological Advantage: The company’s proprietary crystallization method achieves higher yields and lower impurity levels compared to competitors. Investment in a next-generation Carbapenem API production facility is expected to be a key growth driver.

3. Future Outlook and Investment Strategy: What’s Next?

Hitech Pharm is poised for continued growth, supported by strong fundamentals and technological competitiveness.

  • Investment Recommendation: Buy
  • Long-Term Investment Perspective: Considering its core business strength, global expansion plans, and improving financial health, a long-term investment strategy is recommended.
  • Risk Management: Investors should monitor potential risks, including foreign exchange fluctuations, raw material price volatility, and intensifying competition in the antibiotic market.
  • Future Growth Drivers: Pay attention to the company’s investments in next-generation production facilities and new API development.