[Click eStock] "Bioneer, Growth of Cosmerna is Key"

Hana Securities diagnosed on the 13th that the growth of the hair loss cosmetic 'CosmeRNA' is a key factor for Bioneer to turn profitable.

Bioneer recorded sales of 294 billion KRW and an operating loss of 13.5 billion KRW last year. Sales increased by 11.7%, but operating profit turned to a loss.

Hanyugeon, a researcher at Hana Securities, explained, "Consolidated sales increased due to the growth of the subsidiary Acebiome," but "the separate molecular diagnostic kit, reagent, and equipment businesses recorded negative growth due to decreased front-end demand."

He added, "It appears that accounting expenses of about 11.3 billion KRW occurred due to inventory asset allowance set by the lower of cost or market evaluation," and "due to the sharp rise in the KRW-USD exchange rate, a bad debt allowance of 2.4 billion KRW was set for overseas accounts receivable."

He emphasized, "Bioneer's net cash turned negative from 40.3 billion KRW in 2022 to -1.9 billion KRW in 2024," and "the debt ratio has also been increasing every year from 22.7% in 2022 to 46.1% in 2024."

The researcher analyzed, "If the sluggish diagnostic market and the concentrated sales portfolio are not improved, the timing for financial structure and liquidity improvement may be delayed." He explained, "The recent stock price slump is a combined effect of ▲poor performance in the separate diagnostic business segment, ▲delays in the approval of the hair loss cosmetic CosmeRNA by the Ministry of Food and Drug Safety, and ▲worse-than-expected earnings."

The researcher expressed hope, "For Bioneer's diagnostic business to recover its poor profitability, the market success of the CosmeRNA product is important," and "if specific results of CosmeRNA are supported, there is a possibility of a stock price rebound."

He added, "The domestic approval of CosmeRNA should be achieved quickly," and "performance is needed in overseas channels such as Amazon, the Middle East, and Europe."