[Asia Economy Reporter Jang Hyowon] Kyobo Securities analyzed on the 25th that Wonbiogen's performance is expected to increase significantly from next year as new facility investments are completed.
Wonbiogen is a specialized manufacturer of wound dressings that was listed on the KOSDAQ market last February through a SPAC merger. Wound dressings are used to prevent contamination and protect the skin at wound sites, and are categorized into polyurethane foam type, hydrocolloid type, and others depending on the product form.
As of the third quarter of this year, the sales composition by product is 40.2% polyurethane foam dressings, 18.9% hydrocolloid dressings, 20.3% daily necessities, 11.0% cosmetics, and 9.6% others. The consolidated sales as of the third quarter reached 6.8 billion KRW, and operating profit was 1.7 billion KRW, recording increases of 46.3% and 252.6% respectively compared to the previous year.
Researcher Park Sungguk of Kyobo Securities explained, “The reason for the strong performance is the expansion of the company's own brand share and diversification of distribution channels, which led to balanced sales growth across all product categories. Additionally, the packaging line, which previously required significant manpower, was changed from the existing conveyor method to an automatic packaging machine method, improving the cost of sales ratio to 48.9%, a 10.0 percentage point improvement compared to the previous year.” He added, “This profitability improvement effect is expected to continue going forward.”
Researcher Park also stated, “The export ratio within sales on a separate basis for the third quarter of this year was 19.7%, an increase of 9.9 percentage points compared to the same period last year,” and analyzed, “This is because sales of medical devices such as polyurethane foam dressings and cosmetics such as hydrocolloids and spot patches grew mainly in China, Japan, Indonesia, and T?rkiye.”
He continued, “The new facility investment worth 1.8 billion KRW, which began in the first quarter of this year to expand medical device and cosmetic production capacity (CAPA), is expected to be completed by the third quarter and contribute significantly to the 2023 performance.” He added, “As the proportion of tax and health functional foods, classified as existing daily products in consolidated subsidiaries, is reduced and sales of medical devices and cosmetics are expanded, a mix improvement effect is expected.”
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