[Click eStock] "Cell Biotech, Positive Bio Transformation Amid Significant Earnings Growth"

On the 19th, KB Securities analyzed that Cell Biotech's attempt to transform into a bio company amid significant performance growth is positive.

Lim Sang-guk, a researcher at KB Securities, stated in a report on the same day, "Founded in 1995, Cell Biotech's structural transformation attempt into a bio company based on the solid cash cow of probiotics is very innovative," adding, "Multiple momentum factors such as entry into the Chinese market, excellent financial structure, and attractive valuation are also positive."

Cell Biotech recorded sales of 12.6 billion KRW and operating profit of 2.5 billion KRW in the second quarter of this year, representing a 0.9% increase and a turnaround to profitability compared to the same period last year. Operating profit margin significantly improved to 20% through reductions in marketing expenses such as advertising costs.

Researcher Lim analyzed, "The bio new drug development project 'PP-P8,' an oral colon cancer treatment using probiotics, is the next growth momentum," and added, "It is the world's first colon cancer treatment developed using live lactic acid bacteria. If therapeutic effects on metastatic colon cancer are confirmed in the future, it can be designated as an orphan drug, and sales before phase 3 clinical trials will be possible. Furthermore, the development momentum for obesity and diabetes treatments is also very positive."

Researcher Lim also explained, "New entry into the premium probiotics market in China will be an additional growth driver," noting, "China still has only a 20% penetration rate of functional foods, and the probiotics market size is growing annually by 11-12%, making it a market with great potential."