[Click eStock] "HL Science, No Issues with Strong Performance in Health Supplements"

[Asia Economy Reporter Hyunseok Yoo] KB Securities analyzed on the 21st that HL Science's health functional foods show no signs of performance growth issues. No investment opinion or target price was provided.

HL Science recorded sales of 35.6 billion KRW and operating profit of 6.2 billion KRW in the first quarter. This represents increases of 45.6% and 14.8%, respectively, compared to the same period last year. Clinical Researcher Im Linguk of KB Securities stated, "Sales significantly increased year-on-year due to steady sales of organic barley sprout juice powder and strong sales of new products such as Gut Health and Diet Secret," adding, "Operating profit showed strong results despite increased marketing expenses for new products like Beauty Star Pomegranate Skin and Red Pomegranate Collagen."

KB Securities expects HL Science's performance growth to continue. As the COVID-19 pandemic persists, demand for immune enhancement and diet-related health functional foods is increasing. He said, "The ability to develop individually recognized health functional food ingredients is the company's greatest strength," noting that HL Science currently holds 10 differentiated natural individually recognized ingredients, sells various health functional foods and functional ingredients, and maintains strong sales with a solid market position in barley sprout juice powder and pomegranate-related products." He added, "The expansion of the new product lineup is positive, with excellent growth momentum from new products such as Woori Secret for cartilage and joint health functional foods, Dr. Green Propolis and Dr. Prebiotics for immune enhancement, Cissus Raw Diet Secret, and Beauty Star Pomegranate Skin for inner beauty."

He also emphasized the attractiveness from a stock price perspective. He explained, "The current stock price is considered an attractive valuation at a PER of 11.2 times based on the 2020 FnGuide expected performance."