[Click eStock] "BioPlus, Large-Scale Supply Contract... Reason for Explosive Expansion"

Hanyang Securities analyzed on the 7th that the recent explosive expansion of production facilities (CAPA) at BioPlus is due to large-scale supply contracts. They also emphasized that obesity treatments are expected to attract market interest.

Researcher Lee Jun-seok of Hanyang Securities stated in a report on the same day, “HA fillers are showing high demand overseas, which will support the company’s sales growth, and sales from skin boosters and cosmetic raw materials will also begin in the second half, providing additional momentum to existing sales.” He added, “Furthermore, among obesity treatments recently gaining market attention, BioPlus is developing semaglutide using microneedle patch technology, which is expected to draw market interest.”

The recent expansion cost of the Eumseong factory invested in by BioPlus is 150 billion KRW, and upon completion, the HA filler CAPA will increase from 3 million units to 40 million units, more than a tenfold increase.

Lee said, “Considering the increased CAPA scale and the scheduled demand for HA fillers, the potential for annual sales growth is very large, and the expansion of the Hainan factory targeting China is also a key point.” He added, “The Hainan factory is expected to complete GMP certification in the third quarter of this year, and sales of the company’s major new products, Bonyx AURA (skin booster) and cosmetic raw materials, will also begin alongside HA fillers.”

He also explained, “The scale of expansions in Eumseong and Hainan might seem excessively large, raising concerns about funding and potential profitability damage due to depreciation. However, these concerns were alleviated when BioPlus announced MOUs and supply contracts with several companies in China and Brazil, including Shandong Focusfreda Biological Co.”

He stated, “The total annualized amount signed with five companies is approximately 83.4 billion KRW, which is 28.3% higher than last year’s sales of 65 billion KRW. Since the company has made efforts over many years to enter the Chinese and Brazilian markets, this contract is expected to drive sales growth.”

Additionally, he forecasted, “BioPlus is also developing obesity and diabetes treatments, which will have a positive effect on the stock price.”

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