[Click eStock] "BioPlus, Expecting Stair-Step Growth"

[Asia Economy Reporter Song Hwajeong] Kiwoom Securities evaluated BioPlus on the 3rd, stating that stepwise growth is expected as new business ventures are added alongside existing operations. No investment opinion or target price was provided.

BioPlus, a specialist in HA fillers, was listed on KOSDAQ on September 27. As of Q3 this year, HA fillers account for 85% of total sales, adhesion prevention agents 9%, and joint synovial fluid and other sectors 6%. Researcher Heo Hyemin of Kiwoom Securities explained, "BioPlus's main product, the HA filler, uses the DVS crosslinking method instead of BDDE, which is commonly used by existing companies, boasting more stability and superior viscoelasticity. BioPlus is the only company worldwide capable of mass-producing DVS, allowing indirect sales without aggressive price cuts, resulting in an operating profit margin of approximately 51.7% as of Q3."

Expansion of existing businesses and entry into new markets are progressing simultaneously. BioPlus's HA platform MDM technology can be applied to substances beyond fillers and adhesion prevention agents, facilitating business expansion. The company is diversifying its portfolio by developing biobased breast and biobased cartilage substitutes. On October 22, BioPlus acquired UbiProtein, making its entry into the obesity treatment market more tangible. Researcher Heo noted, "The approval of HA fillers and adhesion prevention agents in Hainan, China, is becoming visible, which is positive. Considering that only export sales are currently recognized, price increases in the mainland after approval, followed by improvements in sales and operating profit, are worth considering."

Kiwoom Securities forecasts BioPlus to achieve sales of 50 billion KRW next year and annual sales of 300 billion KRW in the mid-to-long term through new business growth. Researcher Heo stated, "Not only simple top-line growth but also maintaining or improving operating profit margins can be targeted through leveraging existing sales networks and recruiting management talent. Additionally, since the raw material factory lines are similar, operating the factories more can realize operating leverage effects, and even if facility investments are made for this, the costs are not significant."

However, overhang issues remain. On October 27, one month after listing, 1,901,357 shares (about 13.7% of listed shares) under a one-month lock-up were released into the market, but the stock price fell only 0.2%, having little impact. On the upcoming 27th, 420,854 shares (2.9%) and on March 27 next year, 4,584,610 shares (31.9%) of protective lock-up will be lifted.

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