[Click eStock] “Green Cross Wellbeing Accelerates Entry into Chinese Market... Expecting Growth in Aesthetic Business”

Hanyang Securities analyzed on the 5th that Green Cross Wellbeing is expected to secure growth momentum through its entry into the Hainan market and the acquisition of a botulinum toxin company, benefiting from the activation of consumption in China.

Lee Joon-seok, a researcher at Hanyang Securities, stated in a report on the same day, "2025 will be a year of full-scale growth," adding, "With the activation policy of Chinese consumption restoring consumer sentiment, the entry of HA fillers and ‘Rainek’ into China will accelerate."

Green Cross Wellbeing is a company that manufactures and sells placenta injections and health functional foods, and was listed on KOSDAQ in October 2019. Its flagship product, the placenta injection ‘Rainek,’ is used for skin beauty and liver function improvement purposes, holding a 77% market share in the domestic placenta injection market. In September last year, Green Cross Wellbeing obtained sales approval for ‘Rainek’ in Hainan, and accordingly, full-scale sales are expected to begin this year.

Additionally, last month, it acquired Inibio, a domestic toxin specialist company, for approximately 40 billion KRW. Inibio is the tenth company in Korea to receive approval from the Ministry of Food and Drug Safety for the botulinum toxin ‘Iniboju’ and has established a sales network mainly in Southeast Asia and CIS countries.

The researcher analyzed, "While maintaining stable sales in the existing prescription drug sector, the company plans to maximize synergy by linking the new businesses of HA fillers and toxin product lines with the existing distribution network," adding, "This points to full-scale growth."

Green Cross Wellbeing's provisional performance last year recorded sales of 133.81 billion KRW (up 11.0% year-on-year) and operating profit of 12.96 billion KRW (up 24.0% year-on-year), achieving an operating profit margin of 9.7%. In particular, the main product ‘Rainek’ accounted for 30% of sales, recording 40.14 billion KRW, and aesthetic sales reached 9.9 billion KRW, an increase of about 6.9 billion KRW compared to the previous year (3.0 billion KRW).

The researcher evaluated, "Overseas sales of HA fillers amounted to 1.5 billion KRW, with sales first occurring in the fourth quarter of last year through Hualun Pharmaceutical, a strategic partner of the parent company Green Cross (GC)," adding, "Growth potential is expected."

Meanwhile, the health functional food subsidiary ‘Earnesty,’ which had large deficits due to domestic market saturation, significantly reduced its deficit through restructuring and improved profitability. Accordingly, continuous performance growth is expected.

Green Cross Wellbeing is currently conducting clinical trials to expand the volume and change the formulation of ‘Rainek.’ The existing 2.5ml ampoule will be expanded up to 10ml, and an IV (intravenous injection) administration method will be added to broaden indications and usage. Sales volume (Q) and price (P) increases are expected as a result.

Furthermore, to diversify the portfolio of the aesthetic business division and expand exports, the company began factory expansion in 2021 with an investment of about 75 billion KRW, and full-scale operation started in 2023. If 2024 was the year to lay the foundation for business diversification and entry into China, 2025 is expected to be the year of full-scale growth.

The researcher forecasted, "With the activation policy of Chinese consumption restoring consumer sentiment, the entry of HA fillers and ‘Rainek’ into China will accelerate," adding, "Through market share expansion using the existing distribution network and pioneering new markets, 2025 performance is expected to record sales of 172.46 billion KRW (up 28.9% year-on-year) and operating profit of 16.71 billion KRW (up 9.7% year-on-year)."

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