[Click eStock] "HPO, High Business Expansion Potential Based on Premium Brand"

[Asia Economy Reporter Hyunseok Yoo] NH Investment & Securities analyzed on the 31st that HPIO holds high business certainty based on its premium brand.

HPIO operates a health functional food business centered on its Nordic-based premium brand 'Denps.' It has secured competitiveness in terms of Europe-based raw materials and production networks, brand marketing, and product development. As of 2020, the sales proportion by product was 58.8% probiotics, 24.1% vitamins, and 17.1% others (Omega-3, collagen, etc.).

Kyunggeun Kang, a researcher at NH Investment & Securities, said, "Based on its own brand, it has entered global markets such as China and Japan. Last year, overseas sales amounted to approximately 10 billion KRW (9.4 billion KRW in China)." He added, "It has entered top offline and online sales channels in China, Japan's largest TV home shopping, and plans to enter Amazon in the U.S., so global achievements are expected to accelerate." He also added, "To enter the new pet food business, it established a subsidiary, Copenhagen Recipe, and is developing products based on Nordic raw materials, scheduled for release in the third quarter of this year."

NH Investment & Securities expects HPIO's sales and operating profit this year to reach 205 billion KRW and 42 billion KRW, respectively, representing increases of 43.6% and 63.7% compared to the previous year. He evaluated, "Along with a solid position as a premium brand within the top-tier product group that is not sensitive to trends, overseas expansion results are expected to become clearly visible. Considering the high scalability related to other health functional foods (Lactium, collagen, etc.) and new businesses (pet food) based on the premium brand, granting a valuation premium is justified."

Meanwhile, HPIO, established in April 2012, is conducting an IPO aiming for a KOSDAQ listing next month.

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