[Click eStock] "HPO Achieves Record Quarterly Earnings... Stock Price Still at Low Point"

NH Investment & Securities forecasted on the 7th that HPIO achieved its highest quarterly performance in Q2 this year and expects high growth to continue in the second half of the year.

Shim Eui-seop, a researcher at NH Investment & Securities, explained in a report on the same day, "Both the core business and subsidiaries recorded strong performances."

He analyzed, "The core business, Denfps health functional food business, saw a continuous inflow of online mall customers following large-scale marketing in the second half of last year, resulting in an increase in the proportion of online sales (42.9% last year → 59.9% in Q1 this year → 59.0% in Q2 this year). Additionally, the separate sales revenue in Q2 this year increased by 15.3% compared to the same period last year, indicating a continued turnaround and profitability improvement."

Furthermore, Researcher Shim evaluated, "With the increase in the sales proportion of subsidiaries, the company is growing from a health functional food brand company into a comprehensive consumer goods brand company."

He stated, "All major subsidiaries recorded their highest quarterly sales," citing the synergy effects from Biopharm's capacity expansion and increased captive product ratio, the peak season effect in Q2 for GeoInfotech, and the acquisition effect of Apricot Studio as key factors for the performance. He also explained, "The Chinese sales corporation 'Denfps Shanghai' recorded year-over-year sales growth."

Researcher Shim forecasted, "The performance turnaround will continue in the second half of the year." He analyzed, "While stable performance recovery in the core business continues, the operating rate is expected to rise due to the new line expansion at Biopharm and the continued increase in captive product production. Additionally, sales growth trends in the Chinese and Danish corporations are also expected to continue."