PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
Novarex is preparing for its next growth phase through the Osong Plant 2 expansion, building on 2025's earnings recovery and rapid export growth.
2025 consolidated revenue reached KRW 404.3bn and operating profit KRW 43.1bn, up 35.8% and 85.7% year over year, extending an earnings recovery.
2025 export revenue rose 66.3% year over year to KRW 151.8bn, and both domestic and export sales continued growing in the first half of 2026.
Construction of Osong Plant 2 began in March 2026, and upon completion, production capacity is planned to expand from roughly KRW 500bn to about KRW 1 trillion.
Owner's net income hit a record KRW 14.6bn in Q1 2026 before falling to roughly KRW 7.7bn in Q2 2026, widening quarter-to-quarter volatility.
The company holds the largest number of individually-recognized functional ingredients in Korea (49), maintaining ODM competitiveness through ingredient differentiation.
Novarex is a specialized health-supplement ODM/OEM company with an integrated platform covering ingredient development, formulation design, production, and quality control. Its facilities can handle nearly every dosage form, including tablets, capsules, powders, gummies, and liquids.
The company operates production sites in Osong and Ochang in Cheongju, North Chungcheong Province, and according to production-volume data released by the Ministry of Food and Drug Safety in May 2026, Novarex ranked first among domestic health-supplement makers with KRW 350.3bn in production value in 2024.
It holds the largest number of individually-recognized functional ingredients in Korea (49), which is cited as a key source of ingredient differentiation.
Its customer base spans network-marketing firms such as Amway and Nu Skin, large food companies such as CJ CheilJedang, and exclusive contract manufacturing for overseas brands including GNC of the United States and Blackmores of Australia.
Sales are split between domestic and export channels, with the export share expanding rapidly in recent periods. Domestic competitors include Kolmar BNH, Cosmax BTI, and Suheung, together forming a top-four structure in Korea's health-supplement ODM market.
To expand capacity, the company is building Osong Plant 2, which upon completion is expected to raise total production capacity from roughly KRW 500bn to about KRW 1 trillion.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩99.1B | ₩11B | 11.1% |
| 2025Q3 | ₩113.8B | ₩12.9B | 11.3% |
| 2025Q4 | ₩100.7B | ₩10.7B | 10.6% |
| 2026Q1 | ₩120.8B | ₩14.1B | 11.7% |
| 2026Q2 | ₩101.8B | ₩11B | 10.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩281.7B | ₩25.2B | ₩20B | 8.9% | 11.0% | 49.2% |
| 2023 | ₩302.2B | ₩25.5B | ₩22B | 8.4% | 11.0% | 32.1% |
| 2024 | ₩297.7B | ₩23.2B | ₩23B | 7.8% | 10.5% | 31.5% |
| 2025 | ₩404.3B | ₩43.1B | ₩35.4B | 10.6% | 14.0% | 41.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-24
Novarex's 2025 consolidated revenue was KRW 404.3bn, up 35.8% from KRW 297.7bn in 2024, while operating profit rose 85.7% to KRW 43.1bn, lifting the operating margin from 7.8% to 10.6%. Owner's net income also grew from KRW 23.0bn in 2024 to KRW 35.4bn in 2025, marking a clear earnings recovery.
This contrasts with a relatively flat revenue trend of KRW 281.7bn, KRW 302.2bn, and KRW 297.7bn across 2022-2024, making 2025's rebound stand out.
On a quarterly basis, Q3 2025 posted record quarterly revenue of KRW 113.8bn, operating profit of KRW 12.9bn, and owner's net income of KRW 12.2bn, before easing to revenue of KRW 100.7bn and operating profit of KRW 10.7bn in Q4 2025.
Q1 2026 then set a new high with revenue of KRW 120.8bn and operating profit of KRW 14.1bn, while owner's net income of KRW 14.6bn exceeded operating profit, suggesting a contribution from non-operating items.
In contrast, Q2 2026 revenue fell to KRW 101.8bn and operating profit to KRW 11.0bn, with owner's net income dropping to about KRW 7.7bn, roughly half the Q1 level, widening net-income volatility.
Summed over the most recent four quarters (Q3 2025 through Q2 2026), owner's net income totaled KRW 42.9bn, exceeding the full-year 2025 figure. Operating cash flow moved from KRW 20.1bn in 2022 to KRW 16.7bn in 2025, a pattern that appears to partly reflect higher inventory and receivables tied to revenue growth.
Korea's health-supplement market continues a gradual expansion driven by an aging population and the spread of wellness-oriented consumption. According to the Korea Health Functional Food Association, the market grew from KRW 5.1759 trillion in 2020 to KRW 6.044 trillion in 2024.
More recently, diversification of retail channels such as Olive Young, convenience stores, and Daiso, combined with demand from foreign visitors to Korea and new demand from consumers in their 20s and 30s, has broadened the domestic sales mix.
In the ODM/OEM segment, order flow tends to concentrate with manufacturers that have strong production capability as brand-level competition intensifies; Novarex and Suheung have shown steep growth in both sales and profit, while Kolmar BNH and Cosmax BTI have focused on margin improvement and formulation diversification, indicating diverging growth paths even within the same top-four group.
On the export front, demand for K-health-supplements in the Chinese market has clearly expanded, and domestic ODM firms, including Novarex, are sharing in this benefit.
Novarex is regarded as relatively well positioned given its number-one domestic production ranking and its largest portfolio of individually-recognized ingredients, but with plant utilization already above 100%, further capacity expansion is seen as the key variable for future growth.
The company held a groundbreaking ceremony for Osong Plant 2 in Osong, North Chungcheong Province on March 25, 2026, and upon completion, total production capacity is planned to expand from roughly KRW 500bn to about KRW 1 trillion.
This links to a previously disclosed KRW 61.8bn investment plan for the second plant, with the facility expansion targeted for completion by the end of 2027. Ochang Plant 1 is being renewed as a dedicated probiotics facility to raise formulation-specific production efficiency.
The company stated it will continue developing its pipeline of individually-recognized ingredients, adding two to three new items this year, while also focusing on new formulation technologies centered on consumer ingestion experience.
Overseas expansion plans call for broadening beyond China and Southeast Asia toward the United States, the Middle East, and Europe, with a company representative noting active discussions to expand exports to the United States.
Rather than direct entry, Middle East and European expansion is reportedly being considered through a model similar to its early partnership with GNC, first serving as an Asian production hub for overseas partners that lack their own Asian manufacturing base before deepening the relationship.
In September, the company plans to attend Vitafoods Asia in Thailand to showcase its ten core formulation technologies and identify new project opportunities.
At its first-half earnings briefing, the company said it plans to keep strengthening its mid-to-long-term growth foundation in the second half through expanded production infrastructure, broader global customer contact points, and enhanced formulation technology.
Novarex shares have shown wide swings over the past year and tend to trade below book value per share.
The price-to-earnings multiple calculated on owner's net income over the most recent four quarters sits below the multiple DS Securities applied in its target-price calculation, which it lowered from 12x to 10x to match peers.
On the dividend side, the company has paid annual cash dividends, and in March 2026 it retired 500,000 treasury shares, reducing total shares outstanding to 18,254,848, alongside other shareholder-return measures.
Among brokerages, DS Securities set a target price of KRW 26,000 in a May 2026 report, while independent research firm Research Arum set a target of KRW 19,500 in a July 2026 report, with both citing earnings growth and capacity-expansion momentum as rationale.
These targets, however, reflect each institution's judgment at a specific point in time and are subject to change with future results or market conditions.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-24
Once Osong Plant 2 and the renewed Ochang Plant 1 are completed, total capacity is planned to expand from roughly KRW 500bn to about KRW 1 trillion. With utilization already above 100%, the new lines could improve the company's ability to serve existing customers and take on new orders.
Completion is targeted for the end of 2027, however, meaning there is a time lag before the expansion translates into results.
2025 export revenue rose 66.3% year over year to KRW 151.8bn, and exports grew faster than domestic sales again in Q1 2026. The company has said it is in discussions to extend its reach beyond China and Southeast Asia into the United States, the Middle East, and Europe. This could reduce reliance on any single market and broaden the geographic sales base.
Novarex holds Korea's largest portfolio of individually-recognized ingredients at 49, and plans to add two to three new items annually. Such ingredients grant registered companies exclusive production rights for a set period, which can support pricing power and customer lock-in. The company is also pursuing new formulation technologies to raise the value-add of its ODM services.
Owner's net income hit a record KRW 14.6bn in Q1 2026 but fell to about KRW 7.7bn in Q2, nearly half that level. Operating profit eased more moderately from KRW 14.1bn to KRW 11.0bn, suggesting non-operating items played a role in the sharper net-income swing. This makes it harder to gauge the underlying earnings trend going forward.
In past quarters, domestic sales have declined year over year in certain periods due to factors such as deferred sales tied to raw-material supply issues. This illustrates that Novarex's domestic sales can swing quarter to quarter due to supply issues or base effects. Even as the export share grows, domestic sales still account for a substantial portion of revenue.
The Osong Plant 2 build requires KRW 61.8bn, with a separate investment for the Ochang Plant 1 renovation, and the company has said it will fund this through a mix of internal cash and external financing. During this large capital investment period, fixed costs such as depreciation and financing charges could rise. Even after completion, there may be a lag before the new lines reach efficient utilization levels.
As the export share grows, exposure to KRW/USD exchange-rate movements increases, and changes in imported raw-material prices can also affect margins. Fluctuations in global logistics costs can further affect export profitability.
Changes to Ministry of Food and Drug Safety rules on registering or renewing individually-recognized ingredients, or delays in country-specific certification processes such as in China or the United States, could affect the timing of new product launches or export expansion. Tightening of labeling and advertising regulations for health supplements is another factor to monitor.
Competitors including Kolmar BNH, Cosmax BTI, and Suheung are each pursuing their own margin-improvement or capacity-expansion initiatives. If industry-wide capacity competition intensifies, pricing power and competition for new customers could become more challenging.
Results from attending Vitafoods Asia 2026 in Thailand — worth checking whether new customer or project opportunities emerge.
Q3 earnings release (tentatively noted as around Nov 18 on financial data sites, pending official confirmation) — worth checking whether the operating margin and export-share trend are sustained.
Targeted completion of Osong Plant 2 — worth checking whether the schedule is met and the planned capacity expansion is realized.
The Ministry of Food and Drug Safety's annual health-supplement production data release — will show whether Novarex retains its number-one domestic production ranking for 2026.
Worth checking for concrete progress or contract disclosures related to discussed new partnerships in the United States, Middle East, and Europe.
Novarex extended its earnings recovery in 2025 with double-digit growth in both revenue and operating profit, and this growth continued into the first half of 2026.
However, owner's net income swung sharply, hitting a record in Q1 2026 before falling by nearly half in Q2, reflecting greater volatility tied to non-operating factors.
The Osong Plant 2 expansion, targeted for completion by the end of 2027, is planned to roughly double production capacity, which is viewed as mid-to-long-term infrastructure supporting the company's domestic leadership and export growth.
At the same time, the funding and fixed-cost burden from large-scale investment, exposure to raw-material and currency movements, and competitive responses from rivals pursuing their own restructuring and capacity expansion are all factors to weigh.
DS Securities and Research Arum have each issued target prices citing earnings growth and expansion momentum, though these reflect institution-specific judgments made at particular points in time.
Investors should continue monitoring the upcoming Q3 earnings release, progress on Osong Plant 2, and developments in discussed overseas partnerships to see how the company's growth story unfolds.
Report written 2026-09-05 · Data as of 2026-09-04
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