[Click eStock] Hans Biomed Diversifies Main Product Sales... Earnings Expected Next Year

DB Financial Investment Report
Operating Profit of 22.6 Billion KRW in 2021... 104% Increase Compared to This Year

[Asia Economy Reporter Minji Lee] DB Financial Investment expressed on the 20th that Hans Biomed's profitability could significantly improve next year due to diversification of export countries for its main products.

Hans Biomed has 10 subsidiaries, including overseas sales corporations in China, Thailand, Vietnam, Mexico, Colombia, and domestic corporations. It develops, manufactures, and sells beauty-related products such as medical devices (lifting threads), human tissues (bone and skin graft materials), and cosmetics. As of the fiscal year ending last September, the sales composition was 36% silicone products, 34% human tissues, 17% medical devices, and 10% cosmetics, with exports accounting for 54%.

Smooth Fine, the third-generation breast implant that improved the shortcomings of existing products, expanded its market share from single digits in 2015 to 45% in the first half of this year. Since the export approval application to China was submitted in 2018, approval completion is expected by the end of this year. The Chinese market size is estimated to be between 150 million and 200 million USD, and the penetration rate of third-generation products is expected to increase sharply.

Mint's sales target for this year was 18 billion KRW, a 128% increase from the previous year, but due to the impact of COVID-19, it is expected to record about 12 billion KRW (50%).

Based on the fiscal year ending in September, this year's company sales are expected to increase by 11.4% to 74.6 billion KRW compared to the previous year. Operating profit is expected to decrease by 12% to 11.1 billion KRW. Next year's expected sales and operating profit are projected to grow by 40% and 104%, respectively, to 104.7 billion KRW and 22.6 billion KRW.

Hyunjae Yoo, a researcher at DB Financial Investment, said, "Future sales growth will be driven by overseas sales of Bellagel and Mint," adding, "Bellagel expects export approvals from seven countries, including China and Brazil, by the end of this year, and from next year, full-scale sales will contribute to profitability recovery."

This content was produced with the assistance of AI translation services.