[Click eStock] "Novarex, Expected Performance Level-Up This Year... Annual Operating Profit Forecast of 30 Billion KRW"

[Asia Economy Reporter Ji-hwan Park] Ebest Investment & Securities evaluated on the 15th that Novarex recorded solid performance in the fourth quarter of last year and is expected to continue growing this year. They maintained a 'Buy' investment rating and a target price of 54,000 KRW.

Novarex is a leading Original Equipment Manufacturer (OEM) company with the capability to develop individually recognized health functional food ingredients. It holds the largest number of individually recognized ingredients in South Korea.

Researcher Eun-ae Jo of Ebest Investment & Securities stated, "The fourth quarter sales last year are expected to be 51.1 billion KRW, and operating profit 5.6 billion KRW, representing increases of 14% and 25% respectively compared to the previous year," adding, "It is estimated that profitability improvement continued due to increased operating rates."

By ingredient, sales growth continued for lutein-zeaxanthin, boswellia, krill oil, and customized vitamins. Researcher Jo explained that the individually recognized ingredient 'Lactium (improves sleep quality)', launched in the third quarter, accounted for about 8% of the sales in the second half despite being in its first year of release.

The performance outlook for this year is also bright. Annual sales are expected to reach 270.1 billion KRW, and operating profit 31 billion KRW, representing increases of 23% and 22% respectively compared to the previous year. Researcher Jo predicted, "From the second half of the year, with the operation of the Osong new factory and the expansion of CAPA, the company is expected to enter the investment recovery phase."