see appendix a 1 for analyst certification and important disclosures hanmi pharm co applause copy cats summary we believe that in korea generic drug makers still offer safer more lucrative play than original molecule discovery with cost advantages lower risk profile the first of an under patent has pricing power can lead to hefty margins is our view frontrunner superior formulation technology earnings visibility should remain strong cagr 26 2002 05e driven by promising new product line ups market drugs 2003 management targets sales at w285bn up 24 yoy net w28 5bn 29 estimate w27bn near term expect operating margin decline 14 6 from 15 9 mainly result labor hikes 30 due increased force key risks lie severe competition 2 sg&a burden 3 lack r&d effort development 4 regulatory initiating coverage outperform 1h rating target price w37 600 based on 2003e p e
