[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES assessed NOVAREX Co., Ltd.(194700), stating, “Diversification of global customers is gaining momentum, starting with expanded exports to GNC,” and added, “We expect the company to enter a medium- to long-term growth cycle as the expansion of the Osong Plant No. 2 coincides with a recovery in the domestic dietary supplement market.” However, the firm did not provide an investment rating or a target price.

NOVAREX Co., Ltd. is South Korea’s largest ODM (Original Design Manufacturer) company for functional health foods, handling everything from product planning and raw material development to formulation design and production.
Baek Jun-ki, an analyst at NH INVESTMENT & SECURITIES, noted, “The company has secured the strongest raw material competitiveness in Korea based on 48 individually approved ingredients,” and analyzed, “GNC, a major client, is actively utilizing live commerce in China and selling products manufactured in Korea to Chinese consumers through so-called ‘cross-border transactions’ (direct purchases from overseas).”
He continued, “The products supplied by the company include multipacks, omega-3, and coenzyme Q10, all of which are core items,” explaining, “Currently, GNC in China accounts for a significant portion of sales, so the company is expanding ODM supply to local distributors in the U.S. and Southeast Asia while simultaneously securing new customers in China.” Exports to the U.S. expanded to approximately 7 billion won last year, and the company expects supply through local distributors in Southeast Asia to gradually increase.
Researcher Baek emphasized, “Following the expansion of its existing Osong plant, the company is proceeding with an additional investment of approximately 61.8 billion won, and after this investment, we expect it to level up into a company capable of achieving total sales of 1 trillion won,” adding, “The domestic dietary supplement market is also showing signs of improvement starting in the second half of 2025, and we anticipate moderate growth.”
The company is projected to post record-high results in 2026, with revenue of 490.3 billion won (up 21.7% year-over-year) and operating profit of 57.0 billion won (up 36.0%). He added, “Based on estimated 2026 earnings, the P/E ratio stands at 6x, indicating the stock is undervalued relative to its peers; however, with exports expected to account for 39% of revenue in 2026, a revaluation is warranted.”