[Click eStock] "HPO Achieves Improved Profitability for Four Consecutive Quarters... Now Is a Buying Opportunity"

On May 19, Korea Investment & Securities assessed HPO as a buying opportunity, noting that the company has seen improved profitability for four consecutive quarters.

Eunji Kang, a researcher at Korea Investment & Securities, analyzed that HPO's consolidated sales for the first quarter of this year reached 63.3 billion won, a 14.1% increase compared to the same period last year, while operating profit was 3.3 billion won, up 112.9% year-on-year.

The operating margin stood at 5.2%, marking a 2.4 percentage point increase from the same period last year. This indicates that the trend of improving profitability has continued for four straight quarters.

Kang cited the streamlining of health functional food sales channels and the expansion of High&GoGo supply, resulting from higher utilization rates at the Denmark plant, as key drivers of improved profitability.

By business segment, Denps recorded sales of 28.5 billion won, up 5.5% year-on-year, driven by increased sales to major clients such as Coupang and Olive Young.

BioPharm posted sales of 14.6 billion won, a 31.4% increase from the same period last year, thanks to the addition of new clients. In particular, starting from the second quarter, sales from the U.S. health supplement brand Nutricost are also expected to be reflected.

The Arnn segment saw sales increase to 12.1 billion won, up 20.2% year-on-year, due to the expansion of offline distribution channels. Kang added that the recovery in the birth rate and improvement in domestic consumption also had a positive impact.

The overseas business segment achieved sales of 16.5 billion won, buoyed by increased production of High&GoGo. This figure represents a 184.0% year-on-year increase, contributing to both sales growth and improved profitability.

Kang projected, “From the second quarter, additional sales from Nutricost will be reflected, and the higher utilization rate of the Denmark plant is also expected to continue. Both sales and operating profit are highly likely to maintain their growth trajectory.”

She further explained, “The derma cosmetic brand Judoc, acquired in 2025, is also contributing to annual performance improvements through expansion into Olive Young and Amazon.”

In addition, she added, “With the recovery of consumption in Korea and China and increased inbound demand, expectations for improved performance remain valid, so the upward trend in stock price is likely to continue.”

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