[Click eStock] "Biol, Higher Growth Rate Than Last Year"

NH Investment & Securities forecasted on the 28th that Biol is expected to achieve a higher growth rate this year compared to last year.

Sim Eui-seop, a researcher at NH Investment & Securities, stated in a report on the same day, "Biol's projected performance is sales of 60.8 billion KRW and operating profit of 32.1 billion KRW, representing increases of 43% and 44% respectively compared to the previous year," and predicted that "it will record an even higher growth rate than last year."

Researcher Sim said, "Sustained growth centered on the US and Asian regions, along with sales to Brazil, which obtained certification at the end of last year, and China, which recently obtained certification, are expected to contribute to high growth," adding, "Although marketing expenses are expected to increase compared to last year due to expansion into new countries, domestic sales growth, and new product launches, the operating leverage effect from sales growth and an increased proportion of consumables will offset this, resulting in an operating profit margin of 52.8%, surpassing last year's level."

Biol's stock price recently rose following media reports related to the ITC lawsuit settlement and the announcement of obtaining China NMPA certification. Through agreements with competitors, Biol has been recognized for its proprietary technology, strengthening its operational advantages. Although the specific amount has not been disclosed, settlement payments and royalties are expected to be reflected starting from the second quarter's results.

He added, "The first ITC ruling is scheduled for the end of April, with the final ruling in September. While it is difficult to predict the outcome, a victory would not only have financial effects but also serve as an opportunity to further strengthen the company's position in the needle RF market," and analyzed, "Although conservative performance assumptions were applied for new countries and new products, the price-to-earnings ratio (PER) based on this year is still at a relatively undervalued level of 20.4 times."