[Click eStock] "HPO, Health Supplements as a Brand...Stable Revenue Structure"

Research Alarm set a target price of 3,900 won for HPO on March 16, reflecting expectations for improved profitability.

Choi Seonghwan, a researcher at Research Alarm, stated in a report released that day, "Based on its premium health functional food brand 'Denps,' the company has been planning and distributing products such as probiotics, vitamins, and omega-3. It has grown by using premium concepts centered on raw materials sourced from Denmark and Europe, and has established a stable sales structure through home shopping and both online and offline channels."

In addition to the health functional food business, HPO is expanding its business portfolio through various new brands. The company is strengthening its brand competitiveness in new business areas with kids' lifestyle brands including kickboards and children's clothing, pet food brands, and derma-cosmetics.

HPO has made investments in recent years to enhance its production and business structure, and the resulting profitability improvement is expected to become apparent starting this year. In the health functional food segment, the company expanded investments in production facilities to secure in-house manufacturing capabilities. Its subsidiary BioPharm established a new production plant in Pyeongtaek in February 2024, and set up a local production facility in Denmark in July of the same year, establishing a global production system. While the period from 2024 to 2025 was a stabilization phase for the new production lines, which partially reflected cost burdens, from this year, improvements in production efficiency and cost reduction effects are expected to be realized.

Researcher Choi commented, "For this year, we estimate revenue at 282 billion won and operating profit at 14 billion won. Along with steady sales growth in the health functional food division, the expansion of the junior life business and the gradual visibility of contributions from new businesses such as derma-cosmetics are expected to be realized."

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