[Click eStock] "BioPlus, Fully Launching China Business... Growth Expected"

[Asia Economy Reporter Myunghwan Lee] Cape Investment & Securities announced on the 12th that it maintains a buy rating and a target price of 38,000 KRW for BioPlus. This is due to expectations for the company's performance in China as it prepares to enter the Chinese market.

Cape Investment & Securities projects BioPlus's sales for the second quarter of this year to increase by 45.6% year-on-year to 13.7 billion KRW, with operating profit rising by 29.2% to 6.6 billion KRW. The operating margin is estimated to increase by 1.5 percentage points from the previous quarter to 48%.

The firm expects that sales of the core business, hyaluronic acid (HA) fillers, will exceed 9 billion KRW, driving external growth. Steady sales across countries including South Korea, Europe, and Asia are solidifying the premium filler product's position and maintaining high profitability.

Growth in BioPlus's China business, which has officially started, is anticipated. BioPlus received special import permits from the Hainan Drug Administration for two facial and body filler products. Based on this special import permit, the company plans to proceed with fast-track clinical approval from the NMPA (National Medical Products Administration of China) next year, raising expectations for its China business, Cape Investment & Securities noted.

Sales from the Chinese market are expected to begin from the third quarter of this year. Since Cape Investment & Securities' earnings estimates do not yet include sales from China, there is potential for upward revision of earnings forecasts.

Cape Investment & Securities analyzed that expectations for BioPlus's performance in China could be a factor driving future stock price increases. An Joo-won, a researcher at Cape Investment & Securities, stated, "With expanding earnings and growing visibility of high growth momentum in China every year, we expect the stock price trend to remain solid."

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