1. What Happened at BioFD&C?

BioFD&C reported H1 2025 revenue of ₩4.6 billion (down 11.8% YoY), operating profit of ₩1.8 billion (up 49.7% YoY), and net income of ₩1.7 billion (up 101.7% YoY). While revenue missed market expectations, operating profit and net income exceeded or met forecasts.

2. Why These Results?

2.1 Reasons for Revenue Decline: A 35.4% drop in sales of GFX, its flagship product, is the primary driver. However, the increase in export share from 29.4% to 36.4% and the 4.15x growth in research service revenue offer positive signals.

2.2 Drivers of Profitability Improvement: Repayment of short-term borrowings reduced interest expenses, significantly boosting operating and net income. Efficient cost management also contributed.

2.3 Enhanced Financial Health: Significant repayment of short-term debt lowered the debt-to-equity ratio from 6.6% to 4.5%, strengthening financial stability and investment appeal.

3. What’s Next? – Investment Implications

3.1 Positive Aspects:

  • • Strong plant cell platform technology
  • • Improved financial structure and profitability
  • • Expansion into new businesses (microneedle patches, pharmaceuticals)
  • • Increased export share

3.2 Negative Aspects and Risk Factors:

  • • Sluggish sales of flagship product GFX
  • • Uncertainty surrounding new business performance
  • • Intensifying competition in the biomaterials market

3.3 Investment Strategy: While short-term concerns regarding revenue decline exist, the long-term potential of BioFD&C’s core technology and new ventures warrants attention. Careful monitoring of new business development and sales recovery of core products is crucial. A dollar-cost averaging strategy or a wait-and-see approach is recommended.