JW Pharm more than doubles OP in Q2 to post best-ever results

JW Pharmaceutical Corp. headquarters. [Courtesy of JW Pharmaceutical]

Shares of JW Pharmaceutical Corp. surged following the announcement of its all-time high second-quarter sales and operating profits. SKC Co. also saw an uptick in its stock price amid expectations of improved performance despite its lackluster second-quarter results due to increased lithium battery inventory in China and Europe.

On Wednesday, JW Pharmaceutical said its non-consolidated sales figures for the quarter reached 183.5 billion won ($140 million), up 12.6 percent from a year ago. Operating profits more than doubled to 22.7 billion won for the same period. The company achieved record-breaking April-June sales and operating profits as its prescription and over-the-counter medicines experienced substantial growth. Notably, net profit also skyrocketed, recording a 736 percent surge to 16.9 billion won. JW Pharmaceutical shares climbed by 4,800 won or 12.8 percent on the same day.

SKC, on the other hand, announced preliminary consolidated figures for the quarter, reporting sales of 630.9 billion won and an operating loss of 36.9 billion won. The sales figure was up 16 percent from a year ago, and operating profits turned into losses. Even in comparison to the preceding quarter, sales declined by 5 percent, and the operating loss widened by around 70 percent. These figures fell short of the consensus of securities firms polled by FnGuide. The lingering secondary battery inventory issues in China and Europe, coupled with a price decline driven by a surge in China’s cobalt production, were the primary contributors. Despite the challenges, SKC’s stock price still experienced an increase, adding 2,200 won or 2.3 percent on Wednesday.

Hugel Inc., which disclosed its results on the same day, reported an operating profit of 28 billion won for the second quarter on a consolidated basis, marking a 27.5 percent increase from the same period last year. Sales amounted to 81.6 billion won, up 27.7 percent from a year ago, with net profit up by 39 percent to 21.4 billion won. Following the announcement, Hugel’s stock price rose by 3,600 won or 3.4 percent.

Coway Co. also disclosed its second quarter results, with a 2.9 percent on-year increase in sales to 1.06 trillion won. Operating profits grew by 10.3 percent to 194.2 billion won during the same period. For the first half of the year, Coway’s sales totaled 1.95 trillion won, up 2.5 percent from a year earlier, with operating profits up 6.1 percent to 369.8 billion won.