[Click eStock] "Biol, Growing Expectations for Additional Profit Generation"

Yuanta Securities analyzed on the 14th that Biol recorded its highest-ever performance last year.

Biol posted sales of 42.5 billion KRW and an operating profit of 22.3 billion KRW last year. This represents an increase of 36.7% and 72.8%, respectively, compared to the previous year.

Researcher Son Hyun-jung of Yuanta Securities explained, "Last year's performance met the existing estimates," adding, "The sales composition was 66% equipment and 33% consumables, and the profitability improved as the proportion of consumables increased compared to the previous year."

He continued, "Biol received part of the settlement money related to the ITC lawsuit from Serendia in the U.S.," and analyzed, "Although Biol is not a direct party to the ITC lawsuit, it receives 90% of the net proceeds from the lawsuit according to the contract." He also added, "Biol's net profit is expected to increase significantly this year," noting, "Serendia filed an ITC lawsuit in March last year for patent infringement of microneedle RF technology."

Researcher Son emphasized, "Among the approximately 10 companies sued, agreements have been completed with six so far," and "Revenue related to settlement money is expected to be reflected within the first quarter." He explained, "There is a high possibility of additional periodic royalties," and "This year's performance can expect an upward valuation due to an increase in earnings per share (EPS) from additional income."

He analyzed, "Approval for SilfirmX in China is imminent," and "It is expected that the approval will be completed by the end of next month, earlier than anticipated." He also forecasted, "In 2022, a supply contract worth 18 billion KRW over five years related to SilfirmX was signed with Sichuan Pharmaceutical Group in China," adding, "Once approval is obtained, rapid entry into the Chinese market will be possible."