[Click eStock] "Bioplus Kicks Off Cosmetics in Earnest...Earnings Level-Up Expected with Skin Boosters"

On May 21, Hanyang Securities evaluated that Bioplus is entering a full-fledged phase of earnings growth, driven by the expansion of its aesthetic portfolio and improved profitability. Accordingly, the target stock price was set at 9,500 won, representing an upside potential of approximately 85.5% compared to the previous day's closing price.

Junseok Lee, a researcher at Hanyang Securities, stated, "2026 will mark the phase where Bioplus's earnings level-up becomes full-fledged," adding, "It is expected to be the first year that the company’s foundation for top-line growth broadens, as cosmetics and skin booster sales are added to the stable cash cow of the existing HA filler business."

For the first quarter of this year, Bioplus reported a consolidated revenue of 26.51 billion won, up 15.4% year-on-year, while operating profit fell by 20.4% to 5.66 billion won. Although top-line growth continued, increased labor costs at the Eumseong plant and the payment of bonuses resulted in a temporary decline in profitability. Nevertheless, the company maintained a strong operating profit margin of 21.3%.

By region, sales in the Middle East were sluggish due to geopolitical risks, but increased sales in South America offset this to a large extent. By product, HA fillers accounted for the largest share at 52.0%, followed by medical devices at 17.1%, cosmetics at 10.6%, and goods and services at 20.3%.

The market is particularly focusing on the growth of the cosmetics segment. Bioplus's cosmetics sales stood at 5.45 billion won for the entire year of 2025, but reached 2.81 billion won in just the first quarter of this year. Hanyang Securities projected that annual cosmetics sales this year will exceed 10 billion won.

Researcher Lee evaluated, "The first-quarter results confirm that while the high profitability of HA fillers is being maintained, sales contributions from the cosmetics segment are expanding rapidly."

The company's core growth driver is the expansion of its aesthetic portfolio centered on skin boosters. As the existing aesthetic market shifts from simple volume procedures to a focus on skin regeneration, elasticity, and skin quality improvement, Bioplus is also expanding its product lineup from fillers to skin boosters and bio-cosmetics.

The flagship product, 'HUGRO Elastin Collagen,' is a skin booster based on recombinant human type 3 collagen and elastin. As it is derived from recombinant sources rather than animal or cadaver materials, it stands out in terms of ingredient safety, supply stability, and consistent quality.

Researcher Lee explained, "While traditional skin boosters may have limitations in raw material sourcing and batch uniformity, HUGRO skin booster, being recombinant-based, can produce specific ingredients with uniformity and is advantageous for mass production."

Currently, Bioplus is conducting tests with domestic and overseas clients and is focusing its marketing efforts on hospitals and clinics. The company is also working on building treatment protocols by securing key doctors and engaging in academic and academy activities. It is analyzed that if initial references are accumulated in the first half, collagen skin boosters are highly likely to emerge as a new growth axis following cosmetics.

Hanyang Securities presented its 2026 earnings estimates for Bioplus as follows: sales of 120.58 billion won and operating profit of 29.18 billion won, representing increases of 32.7% and 94.4%, respectively, compared to the previous year.

Researcher Lee commented, "After the completion of the Eumseong plant in the first half of last year, fixed cost burdens such as labor and operating expenses were reflected from the second half. However, this year, with expanding sales, these cost burdens are likely to be gradually absorbed," adding, "As we move into the second half, both the expansion of new product sales and the absorption of fixed costs will occur simultaneously, resulting in greater profit improvement."

He further stated, "Recently, inflationary pressures have persisted due to war and rising raw material prices, delaying expectations for interest rate cuts. In such an environment, companies with verifiable sales and profits, rather than growth stocks, may become more attractive investment opportunities. Bioplus is expected to stand out for its earnings growth visibility, backed by a consumer goods-style aesthetic portfolio and operating leverage."

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