[Click eStock] "BioPlus, Strong Earnings Growth... Also Secures Funds for Business Expansion"

[Asia Economy Reporter Lee Jung-yoon] Cape Investment & Securities maintained a buy rating and a target price of 38,000 KRW for BioPlus on the 20th, citing sales diversification and expansion into the U.S. and other markets as factors that would increase its valuation.

BioPlus's sales for the third quarter of this year are estimated at 14.8 billion KRW, an 83.6% increase compared to the same period last year, and operating profit is expected to rise 93.0% to 6.9 billion KRW. Sales of the flagship product, fillers, are projected to increase 56% year-on-year to 10.9 billion KRW, and sales of adhesion prevention agents are also expected to experience high growth due to increased ODM (Original Design Manufacturing) production for major domestic pharmaceutical companies and direct sales.

An Joo-won, a researcher at Cape Investment & Securities, explained, "The scale of fillers is expanding as the number of countries and clients newly selling the product increases. Hainan, China, obtained special import approval for two types of filler products in July this year, but due to repeated lockdowns and reopenings in China, it is expected to take some time before significant sales occur."

He added, "Following the second quarter, the third quarter also shows remarkable performance growth, with operating profit margins expected to exceed 45%. The company is enhancing product competitiveness through differentiation of bridging agents."

Additionally, BioPlus raised 20 billion KRW in funding from Lindeman Asia Investment in June. The funds will be used to expand the hyaluronic acid-based biomaterial application product line, develop new R&D pipelines such as obesity and diabetes treatments, and build related facilities.

BioPlus's sales for this year are projected to increase 51.3% year-on-year to 56.6 billion KRW, with operating profit rising 46.3% to 26.7 billion KRW. Researcher An stated, "By segment, fillers are estimated to grow 32% year-on-year to 40.5 billion KRW, and adhesion prevention agents are expected to grow 79% to 5.5 billion KRW. The company differentiates its products in the highly competitive filler market through DVS (Divinyl Sulfone) crosslinking technology and is developing it into a platform."

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