Hanyang Securities analyzed on the 27th that BioPlus's stock price is at its lowest point as sales of cosmetics in China will begin in the second half of the year.
Oh Byung-yong, a researcher at Hanyang Securities, stated in a report on the same day, "The recent decline in BioPlus's stock price is due to the first-quarter earnings shock," and added, "The recent stock price is at its lowest level since listing, which we see as an opportunity."
BioPlus, which used to record quarterly sales of about 15 billion KRW, posted 9.6 billion KRW in sales in the first quarter. Researcher Oh explained, "There may be doubts about the growth potential of the main filler business, but upon closer inspection, this is not the case," and added, "The company is currently investing as much as 150 billion KRW to build a new factory in Eumseong, which will be completed in October this year."
He continued, "While the existing factory could produce about 3 million fillers annually, the new factory will be capable of producing as many as 40 million fillers per year," and analyzed, "Increasing filler production capacity by more than 10 times is naturally a sign of confidence in growth."
BioPlus has been preparing for a new business in skin boosters (drugs injected into the skin) and cosmetics for a long time. Based on two core technologies, BMTS (technology that injects active ingredients into cells) and AUT (technology that increases the half-life of active ingredients), the company developed skin boosters and cosmetics.
He said, "In June this year, the company's skin booster product 'Bonyx AURA' was approved as a Class 2 medical device in China, and sales are expected to begin in the second half of the year," adding, "'Bonyx AURA' is similar in concept to the well-known domestic product 'Rejuran' and is a drug injected into the skin via injection."
He also stated, "The company is already in supply negotiations with large medical device companies in China, and supply contracts could be signed at any time," and forecasted, "Skin boosters and cosmetics in China are expected to become another pillar of the company's growth. The supply contract for 'Bonyx AURA' will also act as a significant momentum for the stock price."
Furthermore, he analyzed, "BioPlus's sales this year are expected to reach 76.7 billion KRW, and operating profit 31.9 billion KRW, increasing by 17.9% and 13.7% respectively compared to the previous year," adding, "From the second quarter, the core filler business performance will recover, and from the second half, sales of skin boosters and cosmetics in China will begin."
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