[Click eStock] "Hyundai BioLand, a Time When Valuation Appeal Will Be Highlighted"

Shinhan Investment Corp. analyzed on the 30th that valuation attractiveness is emerging for Hyundai BioLand as undervaluation factors are being resolved. No investment opinion or target price was provided.

Jiwoo Baek, a researcher at Shinhan Investment Corp., stated, "The company is entering a phase where both top-line growth and profitability improvement are occurring simultaneously," adding, "The valuation appeal is highlighted by the full-scale Nestl? health and functional food distribution business, sales increase due to expanded medical device production capacity (CAPA), and profitability improvement from the sale of loss-making subsidiaries."

He evaluated Hyundai BioLand as securing growth potential through a stable cosmetics material business along with brand distribution and medical devices. Researcher Baek analyzed, "In the case of natural cosmetic materials, steady sales growth is expected through strengthening material competitiveness, responding to indie brand demand, and enhancing global marketing," and noted, "The operating rate is maintained at a stable level of around 70%."

He emphasized, "The exclusive distribution of Nestl? health supplements started in the first quarter of this year, achieving cumulative sales of 15.3 billion KRW by the third quarter," and added, "Currently, products are sold in more than 20 department store food halls, and it is estimated that annual sales of around 20 billion KRW will be achieved from this year, the first year of the business."

Shinhan Investment Corp. forecasted that Hyundai BioLand’s sales and operating profit next year will increase by 18.2% and 29.6% year-on-year to 149.6 billion KRW and 20.3 billion KRW, respectively. He said, "The expected price-to-earnings ratio (PER) next year is 6.8 times, indicating an excessively undervalued range," and added, "If sales from new medical device businesses such as Cartistem and fillers become visible, a stock price revaluation is possible."