[Market Focus] Neocrema Surges for Second Day as Key Player in Global Obesity Treatment Supplement Market

Neocrema has continued its strong performance for the second consecutive day. This is believed to be due to analysts in the securities industry viewing Neocrema as becoming a key player in the global obesity treatment supplement market.

As of 1:58 p.m. on August 28, Neocrema was trading at 8,760 won, up 6.31% from the previous day.

Neocrema's main businesses are functional sugars, functional peptides, and product sales. In the first half of this year, the revenue breakdown was 39.5% from functional peptides, 15.4% from functional sugars, 36.3% from products, and 8.8% from other sources. Among these, functional peptides are used as ingredients in obesity treatment supplements and have recently shown explosive growth, according to HanYang Securities.

Lee Junseok, a researcher at HanYang Securities, explained, "Since beginning commercialization in 2008, Neocrema has expanded exports to major markets such as Japan. More recently, with rising demand for ingredients in obesity treatment supplements, the company has entered the United States and Europe, maximizing its sales."

Given that domestic obesity treatment companies are currently valued in the hundreds of billions to trillions of won despite lacking clear results, Neocrema's current stock price is seen as being extremely undervalued.

He added, "A factory utilization rate of 285% not only proves strong demand but also highlights the need for expansion. With future increases in production capacity, Neocrema's ability to respond to global demand is expected to strengthen. Based on the growth potential of DNF-10 and expansion momentum, Neocrema has the potential to emerge as a key player in the global obesity treatment supplement market."