[Click eStock] "Kolmar BNH, Growth Expected Due to Increased Demand for Health Supplements"

[Asia Economy Reporter Minji Lee] Daishin Securities maintained its buy rating and target price of 37,000 KRW on Kolmar BNH on the 28th, expecting a significant increase in sales due to growing demand for health functional foods (HFF).

The company's sales in the fourth quarter were 107.7 billion KRW, down 1.4% year-on-year. Operating profit was 21 billion KRW, up 15% during the same period, significantly exceeding the market expectation of 19.2 billion KRW.

Researcher Han Kyung-rae of Daishin Securities explained, “Sales in the HFF sector reached 66.5 billion KRW, growing about 20% compared to the same period last year. Domestic sales were 55.5 billion KRW, up 29% year-on-year, while overseas sales were 10.1 billion KRW, down 11%.”

Sales for 2020 are expected to be 517.1 billion KRW, and operating profit 85.2 billion KRW, increasing 17.8% and 15% respectively compared to the previous year. Sales of HFF this year are projected to increase by 26% to 320.7 billion KRW.

Researcher Han said, “Recently, interest in immunity enhancement due to COVID-19 has increased, leading to higher demand for Hemohim. With export expansion through Atomy, overseas sales of HFF this year are expected to reach 55.5 billion KRW, with an annual growth rate expanding to 29.3%.”

With the expansion of the third plant in Eumseong in the first half of this year, it is expected that new non-Atomy customers can be secured based on the increased production capacity. Additionally, new sales from two individually recognized raw materials (Menophenol and Bitter Melon Extract) are also expected to be reflected.

Researcher Han added, “Hemohim products recorded sales exceeding 80 billion KRW last year, establishing a stable revenue source for the company, so newly individually recognized products will become additional growth drivers. This year, new sales will be generated through entry into the Chinese market via global HFF companies.”