HPO, Undervalued Among Health Supplement Companies

[Asia Economy Reporter Hyungsoo Park] Hana Financial Investment analyzed on the 30th that HPIO is the most undervalued among health functional food companies. They newly issued a 'Buy' investment rating and a target price of 22,800 KRW.

Lee Jung-ki, a researcher at Hana Financial Investment, explained, "HPIO is growing its main products based on the 'Denps' brand, including Denmark Probiotics Story (probiotics) and True Vitamin (vitamins)," and added, "We expect external growth through new business ventures such as Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) this year."

He continued, "We estimate sales of 193 billion KRW and operating profit of 37.7 billion KRW this year," adding, "which represents an increase of 35.1% and 46.7% respectively compared to last year."

He emphasized, "The second half of this year will be a period of substantial performance growth," and stated, "while the main products grow steadily, the range of health functional food products will diversify."

Additionally, "the subsidiary BioPharm expansion effect will also be added," and analyzed, "HPIO's average selling price is expected to rise as sales of follow-up products increase, centered on probiotics and vitamins through its own distribution channels."

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