[Click e-Stock] "HPO Continues Growth Through M&A... Beauty Business Set to Accelerate"

HPO has maintained stable growth through continuous mergers and acquisitions (M&A), and this year, its beauty business—centered on the derma cosmetic brand 'JUDOC'—is expected to emerge as a new growth driver, according to recent analysis.

Yuanta Securities stated in a report on the 21st that "HPO has achieved double-digit annual sales growth over the past five years through a sustained M&A strategy," adding, "Starting this year, the beauty business will become the main engine for profit growth." The report did not provide an investment opinion or target price.

Kwon Myungjun, a researcher at Yuanta Securities, explained, "HPO recorded an average annual sales growth rate of 12.6% over the past five years. In the first quarter of this year, the company posted sales of 63.31 billion won and operating profit of 3.28 billion won, up 14.1% and 112.5%, respectively, compared to the same period last year."

Since launching its health functional food business in 2012, HPO has actively expanded its business portfolio through M&A. Beginning with the acquisition of BioPharm, a health functional food ODM·OEM specialist, in 2019, the company went on to acquire Geo Info Tech Innovation, which holds exclusive distribution rights for Micro Quickboard in Korea and Japan in 2021, Apricot Studio, a children’s clothing specialist, in 2023, and most recently, the derma cosmetic brand JUDOC in 2025.

The shift in distribution strategy for the core health functional food brand Denps was also evaluated positively. Researcher Kwon noted, "Denps, which generates over 100 billion won in annual sales, has diversified its distribution channels from a home shopping-centered model to include online platforms such as Coupang and Naver Store, as well as offline retailers like Olive Young and Costco. The proportion of sales from home shopping channels, which exceeded 80% in 2020, fell to below 50% by 2025."

Attention was also drawn to the growth potential of its subsidiary BioPharm. He explained, "BioPharm is expected to drive new sales growth this year through a business agreement (MOU) with Nutricost. In addition, the establishment of the Pyeongtaek plant has expanded production capacity from about 340 million units to 700 million units."

This year, the beauty business was highlighted as HPO’s biggest growth point. The derma cosmetic brand JUDOC, developed by dermatologists, ranked first in the cleansing category at Olive Young in March and is currently in the process of launching on Amazon. The company is also pursuing a combined strategy with a nano-frequency technology-based home skincare device.

Researcher Kwon evaluated, "JUDOC's nano-frequency technology enhances the skin barrier by promoting the penetration of active ingredients into the skin barrier layer. Compared to competing products based on ultrasound and radio frequency, it offers advantages in price competitiveness, contact area, and usage time."

He added, "The company plans to accelerate global market entry by expanding offline partnerships in the United States and leveraging existing distribution networks and viral marketing in China."

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