[Click eStock] "BioPlus, Q4 Earnings Recovery... High Growth Expected in 2025"

Sangsangin Securities forecasted on the 16th that BioPlus will begin a recovery in earnings in the fourth quarter of this year, with substantial high growth expected from 2025 onward.

BioPlus's main businesses include hyaluronic acid (HA)-based dermal fillers, adhesion prevention agents, tissue repair products for joints and bladder, as well as cosmetics. This year, consolidated sales are estimated at 62.8 billion KRW, operating profit at 21.3 billion KRW, with exports expected to account for about 72% of sales.

Researcher Ha Taegi of Sangsangin Securities stated in the report, "HA-based fillers are BioPlus's flagship products, and recent distribution structure reforms are expected to improve performance," adding, "HA filler sales grew by over 40% in 2021 but slowed to the 10% range in 2023. In the first half of 2024, the existing diverse ODM sales structure was reorganized into large ODMs, company-owned dealerships, and regional hubs, marking a turning point."

As a result, cumulative HA filler sales in the third quarter of 2024 recorded 25.6 billion KRW, down 28% year-on-year, but sales in the fourth quarter, when the distribution restructuring is completed, are expected to reach 21.4 billion KRW, a 78% increase compared to the same period last year. This is analyzed as a result of reducing dependence on low-cost ODM companies and shifting sales methods toward direct exports and major clients.

He also said, "BioPlus is preparing for long-term global market expansion," noting, "For HA fillers, they are conducting bridging clinical trials aiming to enter the U.S. market in 2025, with approval targeted for 2026."

Additionally, in the Chinese market, BioPlus plans to obtain GMP approval for its Hainan factory by 2024 and receive filler product approval in the fourth quarter of 2025. The Hainan factory will operate under a two-track strategy, producing both fillers and cosmetics simultaneously.

Alongside this, BioPlus is preparing new businesses such as obesity treatments and gene recombination-based botulinum toxin products, securing mid- to long-term growth drivers.

He concluded, "With the combined effects of distribution restructuring and global market expansion strategies, BioPlus is expected to sustain substantial high growth from 2025," forecasting, "In particular, entry into the U.S. and Chinese filler markets and expansion of the cosmetics business will be key growth drivers."