[Edaily Reporter Shin Ha-yeon ] On the 14th, Shinhan Investment Securities raised its earnings estimates for L&C BIO(290650), stating that mid- to long-term growth drivers—including expansion into the U.S. and China and the commercialization of its waste fat business—are set to gain full momentum. Although the firm did not provide an investment rating or target price, it named the company a top pick within the aesthetics sector.

Kim Ji-young, an analyst at Shinhan Investment Securities, stated, “With a series of positive factors—including Ritwo’s high growth, its entry into the U.S. market within the year, the acquisition of a production license in China in the fourth quarter, and the commercialization of waste fat—the company is expected to post the steepest revenue growth within the aesthetics sector.”

Daol Investment & Securities projected that the company would post second-quarter revenue of 36.8 billion won and operating profit of 8.2 billion won, marking a return to profitability compared to the same period last year. The operating profit margin (OPM) is expected to be 22.3%, in line with consensus estimates. In particular, sales of the skin booster “Rituo” are forecast to surge from 6.1 billion won last year to 70.5 billion won this year.

The company is also assessed to have abundant mid- to long-term growth drivers. Analyst Kim noted, “In addition to the expansion of the age range for MegaCati in September and the production license for the Kunshan plant in China in the fourth quarter, the company is laying the institutional groundwork for new businesses following the Ministry of Food and Drug Safety’s approval for the use of waste fat.” In particular, he noted that the market size for waste fat-based products is likely to be larger than that for skin ECM.

Entry into the U.S. market was also highlighted as a key growth driver. Analyst Kim stated, “The procedure cost for similar products in the U.S. is estimated to be around $2,000 to $3,000, which is approximately 10 times higher than the domestic unit price,” adding, “Securing raw materials and strengthening supply capabilities will be further enhanced through the acquisition of procurement agencies and the expansion of production capacity (CAPA).”

He continued, “Although the stock price has recently corrected by about 36% from its peak, the fundamentals remain solid,” adding, “Considering growth opportunities such as expansion into the U.S. and China and the commercialization of adipose tissue, the projected price-to-earnings ratio (PER) of 31.5 times for 2027 is not overly burdensome.”