[Click eStock] "Alpibi-o, Rapid Growth Due to Surge in Orders"

[Asia Economy Reporter Jang Hyowon] Hanyang Securities analyzed on the 6th that all orders for AlpiBio are filled until April 2024, and its performance is expected to increase sharply.

AlpiBio is a company specializing in soft capsules. It operates a business that provides contract manufacturing (CMO) services for pharmaceutical companies that want to produce medicines or health supplements in soft capsule form. It is the undisputed No. 1 company in the domestic soft capsule market share.

Researcher Oh Byungyong of Hanyang Securities explained in a report on the same day, “Both pharmaceutical companies and patients are increasingly preferring soft capsules,” adding, “The proportion of soft capsules among domestic pharmaceutical formulations is gradually increasing, and orders for AlpiBio are explosively increasing.”

Researcher Oh said, “Although the factory is currently operating 24 hours at full capacity, orders are already fully booked through production volume until April 2024,” and “Therefore, the pharmaceutical factory production facilities are being expanded, and from the first quarter of this year, production capacity worth approximately 50 billion KRW will be additionally expanded and operated, leading to increased sales.” Additionally, AlpiBio plans to build its third new factory this year.

Accordingly, performance is also expected to increase sharply. AlpiBio’s sales and operating profit last year are expected to increase by 20.3% and 117.3%, respectively, compared to the same period last year, reaching 138.2 billion KRW and 12.8 billion KRW. Furthermore, AlpiBio presented a 2023 performance guidance of 180 billion KRW in sales and 22 billion KRW in operating profit.

Researcher Oh analyzed, “The demand for soft capsules is expected to continue increasing without fail, and AlpiBio is a high-growth company growing 20-30% annually,” adding, “This year’s operating profit is expected to exceed 20 billion KRW, but the current market capitalization is only about 100 billion KRW, and the stock price is trading lower than the public offering price of 13,000 KRW.”