[Click eStock] "BioPlus, Strong Filler Sales... High Growth Expected in Q3"

[Asia Economy Reporter Ji Yeon-jin] Hanwha Investment & Securities announced on the 28th that it maintains a buy rating and a target price of 45,000 KRW for BioPlus, expecting high growth and expanded profitability in the third quarter of this year.

BioPlus's estimated third-quarter sales are expected to increase by 93.3% year-on-year to 15.6 billion KRW, and operating profit is projected to rise 112.7% to 7.6 billion KRW. In the second quarter as well, sales grew 49.6% to 14.1 billion KRW, continuing strong performance.

Kim Hyung-soo, a researcher at Hanwha Investment & Securities, explained, "The reason for the strong performance is the increased sales of the filler 'SkinPlus-Hyal,' which accounts for the largest portion of sales," adding, "This filler is the only product using DVS (Divinyl Sulfone) as a crosslinking agent for hyaluronic acid, which has a small molecular weight and short molecular length, and is sold at a higher price compared to other products."

This filler received special approval in Hainan Province last July and began sales promotion, but due to COVID-19 lockdown measures, the start of sales was delayed to the fourth quarter. Sales of fillers in China are expected to begin in earnest from next year.

The company is currently investing in production facilities worth 100 billion KRW. It has secured approximately 12,000 pyeong of land in Eumseong, Chungbuk, and plans to establish a factory with a production capacity of up to 800 billion KRW, aiming for operation in 2025. Considering the 40 billion KRW in cash on hand and annual cash inflows of 10 to 20 billion KRW from operations, additional funding of 30 to 40 billion KRW is required.

Researcher Kim stated, "The best option is for strategic partners who can commercialize the company's products in the largest market, the United States, the high-growth market of China, and Japan, where medical procedures are active, to participate in the funding."