Cumulative Revenue of 34.7 Billion KRW and Operating Profit of 3.4 Billion KRW… Expansion of Supply to Domestic and Taiwanese Clients
HLB Genex (187420) has reported an 83% increase in cumulative operating profit for the first three quarters of this year compared to the same period last year, bolstered by rising sales of its semiconductor-grade enzymes. The company has demonstrated significant profitability improvements, with profit growth rates substantially outpacing revenue growth.
In a regulatory filing on the 12th, HLB Genex announced third-quarter consolidated revenue of 11.7 billion KRW and an operating profit of 1.4 billion KRW. Revenue increased by 15.3% compared to the same period last year, maintaining a solid operating surplus.
Cumulative revenue for the first three quarters of this year reached 34.7 billion KRW, a 12.5% increase year-on-year. During the same period, operating profit surged by 82.9% to 3.4 billion KRW. Following its turnaround to profit in the first three quarters of last year, the company has further expanded its earnings scale this year.
On a non-consolidated basis, cumulative revenue stood at 20.5 billion KRW with an operating profit of 2.3 billion KRW. Both consolidated and non-consolidated results remained in the black, as growth in core business revenue directly translated into improved profitability.
The improvement in performance was driven by the expansion of industrial enzyme sales. Supply of catalase for semiconductor applications increased, particularly among domestic and Taiwanese clients, while lactase maintained stable revenue through the diversification of supply channels.
Catalase is an enzyme that decomposes hydrogen peroxide into water and oxygen, used in semiconductor manufacturing processes to remove residual hydrogen peroxide. Lactase is an enzyme that breaks down lactose and is used in dairy production. HLB Genex supplies both semiconductor process materials and food-grade enzymes.
The company has also focused on financial management. In August, it repurchased 19.6 billion KRW worth of convertible bonds (CB) before maturity. The company stated that this repurchase was part of its efforts to enhance shareholder value.
Kim Do-yeon, CEO of HLB Genex, stated, "Following the first half, both revenue and profit continued to grow in the third quarter, establishing a stable profit structure. We will do our best to enhance the competitiveness of our core enzyme business and maximize shareholder value through efficient management in the fourth quarter."
