Hanmi Pharmaceutical has unveiled its corporate value enhancement plan, aiming to reach 5 trillion won ($3.46 billion) in sales by 2033. The company plans to maintain its R&D-centered strategy while improving profitability and promoting shareholder-friendly policies through dividend expansion and share buybacks.
Hanmi Pharmaceutical 's head office in Seoul
According to data released by Hanmi Pharmaceutical on Wednesday, the company's sales for 2024 are expected to reach 1.495 trillion won ($1.036 billion), with an operating profit of 216.2 billion won and a 14.4 percent operating margin, reflecting a slight year-on-year increase. The debt-to-equity ratio is expected to decrease from 108.6 percent in 2021 to 72.6 percent in 2023 and further decline to 62.6 percent in 2024.
Hanmi Pharm's return on equity (ROE) and price-to-book ratio (PBR) are on the rise, while its price-to-earnings ratio (PER) is declining. The company assessed the current situation as requiring a balanced stock price stimulus that combines R&D investment and shareholder-friendly policies.
Through its mid- to long-term growth strategy, Hanmi aims to achieve a compound annual growth rate of more than 15 percent over the three years to 2027, up from 7.5 percent in the previous period (2021-2024). The company plans to reach 2.3 trillion won in sales and 380 billion won in operating profit with a 16.5 percent operating profit margin in 2027. By 2033, it targets 5 trillion won in sales and 1 trillion won in operating profit with a 20 percent operating profit margin, aiming to become a global Top 50 pharmaceutical company.
In particular, the company plans to focus on expanding its global market, targeting 2.2 trillion won in domestic sales and 3 trillion won in overseas and other sales by 2033.
To achieve these goals, Hanmi Pharmaceutical plans to maintain its R&D investment ratio at more than 15 percent of sales. In particular, it aims to invest over 350 billion won in facilities over the next three years to strengthen its capacity for developing and producing new drugs.
To enhance shareholder value, the company plans to raise the shareholder return ratio—the sum of dividends paid in a given year and the amount used to acquire and retire treasury shares divided by net income based on separate financial statements—from 6 percent in 2023 to over 25 percent by 2027. It also aims to increase dividends and retire treasury shares.
By 2027, Hanmi Pharmaceutical plans to increase its dividend per share by 200 percent from 2023, set a minimum dividend payout ratio of at least 10 percent to ensure dividend stability, and actively implement interim dividends if there is room for additional payouts. The company also stated that it will enhance shareholder value through the acquisition of treasury shares, considering the targeted return to shareholders, and the phased cancellation of retained or purchased treasury shares.
To improve corporate governance, the company aims to raise the compliance rate of core corporate governance indicators from the current 53.3 percent to over 80 percent. To achieve this, it plans to hold shareholders' meetings outside of centralized days, enhance predictability in cash dividends, notify shareholders of dividend policies and implementation plans at least once a year, and appoint an outside director as chairman of the board of directors.
In addition, Hanmi Pharm pledged to improve internal systems to enhance trust and increase shareholder value through smooth communication with shareholders.
The company said it will strengthen shareholder communication by holding IR events with the participation of C-level executives, introducing a day for investors to visit Hanmi Pharm facilities, closing information gaps by promptly disclosing important information, and establishing a systematic environment by setting a dividend reference date after the ex-dividend amount is finalized. Additionally, it will operate a specialized management system and introduce a stock-based compensation system for employees linked to performance evaluation.