[Click eStock] "Novarex, Leap to Global Health Supplement ODM"

On the 31st, DS Investment & Securities analyzed Novarex, a health functional food ODM company, stating, "Domestic demand recovery and export-driven growth are expected this year," and "The expansion of overseas clients continues." The investment opinion 'Buy' and the target price of 16,000 KRW were maintained.

DS Securities forecasted that Novarex's consolidated financial statements for this year would show sales of 324.4 billion KRW and operating profit of 26.9 billion KRW, representing increases of 9% and 16% respectively compared to the previous year.

Domestic sales are expected to grow by 4% to 214.9 billion KRW. The company aims to increase new products through various formulation technologies and expansion of individually recognized raw materials, as well as diversification of distribution channels. Overseas sales are projected to surge by 20% to 109.4 billion KRW. Growth in volume from major Chinese clients and acquisition of new customers are expected to drive external growth. The proportion of overseas sales in Novarex's total performance is forecasted to expand from 7% in 2021 to 25% in 2023 and 34% in 2025.

Analyst Jang Ji-hye stated, "Novarex is the health functional food ODM company that has experienced the steepest export growth over the past three years," adding, "Although domestic sales remained sluggish due to stagnation and intensified competition in the Korean health functional food market, the company has been expanding its market position as a global ODM company by increasing its export ratio."

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