[Click eStock] "Biol, Expecting Expansion to New Areas... 2025, the Year of Proof"

Hana Securities analyzed on the 26th that Biol is expected to expand into new regions and that this year will be a year of proof.

Biol showed growth last year with sales of 58.2 billion KRW (up 36.9% year-on-year) and operating profit of 36.1 billion KRW (up 61.7% year-on-year). In particular, the growth in operating profit was remarkable, mainly due to recognizing technology transfer income of approximately 10.1 billion KRW annually.

Seongho Kim, a researcher at Hana Securities, stated, "Technology transfer income is estimated to have occurred at 1.4 billion KRW in Q1, 3.7 billion KRW in Q2, and 5.0 billion KRW in Q4, with technology transfer income in Q4 coming from JC's Medical and Cynosure."

Researcher Kim also explained, “End-User skin beauty procedures tend to be influenced by trends. Since SilfirmX has been actively expanding its presence in the North American market since 2021, the recovery within the North American market will be a key factor going forward.”

Unlike the relatively sluggish North American market, continuous expansion into Asian countries is evaluated positively. In the past, SilfirmX’s sales proportion in Asia was estimated to be less than 10%, but as the microneedle market in Asian countries has blossomed, the annual sales proportion in Asia exceeded 20% last year.

The proportion of consumables sales also expanded to 41.2% of sales excluding technology transfer income (34.0% including technology transfer income), up from 32.7% the previous year. This appears to be an effect of increased turnover of consumable tips in the Asian region, and accordingly, the operating profit margin improved from 52.5% in 2023 to 54.1% last year.

Researcher Kim forecasted, "In 2025, volume recovery in the North American market and expansion into new countries will drive external growth." In particular, the new RF device, Cellinue, has completed FDA certification and is currently selecting distributors, and the momentum for new country entry of new devices including Duotite is considered valid.

Additionally, SilfirmX is continuously expanding through Chinese distributors and is becoming established as a trend in the market. Researcher Kim evaluated, "There is a high possibility of equipment expansion and increased consumable tip turnover in Asian countries, and as export volumes recover, valuation attractiveness compared to peer companies will be highlighted."