PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩70 per share · Prices as of the 2026-10-02 close
H PIO is expanding from probiotics- and vitamin-centered health supplements into dermocosmetics and overseas OEM, while its operating margin—which fell sharply in 2024—has continued to recover through the most recent quarters.
In 2025, consolidated revenue reached KRW 258.2 billion and operating profit KRW 13.5 billion, both up year-on-year, with the operating margin improving from 3.3% to 5.2%.
Korea Investment & Securities stated (May 19, 2026) that the first-quarter 2026 operating margin of 5.2% (up 2.4 percentage points year-on-year) marked a fourth consecutive quarter of improvement.
Second-quarter 2026 revenue of KRW 78.5 billion was the highest of the last five quarters, but net income attributable to owners fell to KRW 1.8 billion from KRW 2.6 billion the prior quarter.
In 2025 the company entered the beauty business by acquiring dermocosmetics brand JOODOC, which is now expanding through Amazon and Olive Young channels.
The debt ratio rose from 12.8% in 2022 to 33.8% in 2025, a trend observed alongside the company's M&A-related funding needs.
Founded in 2012, H PIO develops, manufactures, and sells health supplements, with its premium brand Denps—built on a Nordic food safety philosophy—as its core offering.
Its flagship products are the probiotic line 'Danish Lactic Acid Bacteria Story' and the vitamin line 'True Vitamin,' both positioned around partnerships with global strain and ingredient suppliers (Chr. Hansen and DSM).
Biopharm, acquired in 2019, handles health-supplement ODM/OEM manufacturing; it recently secured order-based manufacturing volume for Nutricost, a top-selling Amazon health supplement brand, and expanded capacity through a new Pyeongtaek plant.
In China, the company sells the infant milk powder brand Hi&GoGo, produced at its own Denmark-based factory.
Geo Info Tech Innovation (a kick-scooter distributor acquired in 2021) and Apricot Studio (a children's apparel company acquired in 2023) were merged into the Areun entity, forming a junior and family product portfolio.
In 2025, the company entered the beauty business by acquiring JOODOC, a dermocosmetics brand developed by a dermatologist, and is expanding distribution through Olive Young in Korea and Amazon in the United States.
On the channel side, home-shopping revenue share, which exceeded 80% in 2020, has fallen below 50% by 2025, reflecting a shift toward offline retail channels such as Olive Young and Costco.
The health supplement market is characterized by low entry barriers that allow continuous new brand launches, alongside a tendency for market power to concentrate among a small number of brands with proven product credibility.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩74.9B | ₩5.6B | 7.5% |
| 2025Q3 | ₩64.3B | ₩2.1B | 3.3% |
| 2025Q4 | ₩63.5B | ₩4.3B | 6.7% |
| 2026Q1 | ₩63.3B | ₩3.3B | 5.2% |
| 2026Q2 | ₩78.5B | ₩3.9B | 5.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩196B | ₩17.5B | ₩11.5B | 8.9% | 8.2% | 12.8% |
| 2023 | ₩232B | ₩22.1B | ₩15.2B | 9.5% | 11.2% | 29.6% |
| 2024 | ₩242.8B | ₩8B | ₩6.4B | 3.3% | 4.4% | 35.2% |
| 2025 | ₩258.2B | ₩13.5B | ₩8.4B | 5.2% | 5.5% | 33.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue in 2025 reached KRW 258.19 billion, up from KRW 242.83 billion in 2024, while operating profit rose from KRW 7.99 billion to KRW 13.55 billion, lifting the operating margin from 3.3% to 5.2%. Net income attributable to owners also increased, from KRW 6.39 billion to KRW 8.42 billion.
Looking across the four-year window, the operating margin peaked at 9.5% (operating profit of KRW 22.06 billion) in 2023, collapsed to 3.3% in 2024, and then partially recovered in 2025.
On a quarterly basis, revenue of KRW 74.87 billion and operating profit of KRW 5.63 billion in the second quarter of 2025 slowed to KRW 64.34 billion and KRW 2.11 billion in the third quarter, before margins gradually improved through the fourth quarter (KRW 63.48 billion revenue, KRW 4.26 billion operating profit) and the first quarter of 2026 (KRW 63.31 billion revenue, KRW 3.28 billion operating profit).
In the second quarter of 2026, revenue climbed to KRW 78.49 billion—the highest of the last five quarters—and operating profit rose to KRW 3.90 billion, yet net income attributable to owners declined to KRW 1.83 billion from KRW 2.62 billion in the prior quarter.
This divergence shows that revenue growth did not translate directly into growth in owner-attributable net income, a pattern that warrants closer examination of non-operating items or shifts in the share of profit attributable to non-controlling interests.
On the cash flow side, operating cash flow was as high as KRW 24.09 billion in 2023 but declined to KRW 6.72 billion in 2024 and KRW 4.95 billion in 2025.
The debt ratio rose from 12.8% in 2022 to 29.6% in 2023, 35.2% in 2024, and 33.8% in 2025, a change observed alongside acquisitions completed during this period, including Apricot Studio, the Denmark plant, and JOODOC.
The domestic health supplement market has low entry barriers, resulting in a continuous flow of new product launches each year, yet consumer demand tends to concentrate among a small number of brands with proven product credibility, sustaining market power concentration.
In a May 2026 report, Korea Investment & Securities assessed that a recovery in domestic consumption and rising numbers of foreign tourists were having a positive effect on the industry, noting that cumulative pharmacy spending by foreign visitors to Korea from January through April reached KRW 80.9 billion, up 193.2% year-on-year.
This can be read as a favorable environment for a company with a high share of revenue from offline channels such as Olive Young and duty-free stores.
At the same time, demand for OEM manufacturing from major global supplement brands such as Nutricost is growing on platforms like Amazon, opening new revenue streams for domestic manufacturers with production infrastructure.
In the beauty (dermocosmetics) segment, sustained overseas demand for K-beauty makes channel expansion through Olive Young and Amazon a key factor in securing competitive advantage.
However, both the supplement and cosmetics businesses depend heavily on large retail platforms, meaning channel bargaining power and promotional cost burdens can influence profitability.
According to company guidance cited in a May 2026 report by Korea Investment & Securities, H PIO targeted consolidated revenue of KRW 300 billion and operating profit of KRW 20 billion (a 6.7% operating margin) for 2026, representing year-on-year growth of 16.2% in revenue and 47.6% in operating profit versus 2025.
Analyst Kang Eun-ji of Korea Investment & Securities projected that OEM volume secured by subsidiary Biopharm for Nutricost would be reflected in revenue starting in the second quarter of 2026, alongside continued increases in Denmark plant utilization.
She also noted that the Denmark production facility for the Chinese milk powder brand Hi&GoGo was targeting breakeven within 2026.
Dermocosmetics brand JOODOC officially entered Amazon in the United States in March 2026 and ranked first in the cleansing category on Olive Young the same month, reflecting ongoing channel expansion at home and abroad.
Biopharm reportedly expanded production capacity from about 340 million to about 700 million units through a new Pyeongtaek plant, positioning it to handle increased OEM volume from the second half onward.
These targets and projections are based on a brokerage report dated May 2026, and actual achievement will need to be confirmed through upcoming quarterly results.
The company appears to trade at a discount to net asset value, positioned below its five-year average price-to-book ratio (roughly 1.1x). On the earnings side, following the sharp decline in operating margin in 2024, a gradual recovery has continued through 2025 and into the first half of 2026.
Given that the company's five-year average price-to-earnings ratio has been reported at around 14x, the multiple at which it currently trades appears to sit below that historical band.
Regarding dividends, the company has a history of paying annual cash dividends, and its dividend yield is understood to run somewhat below the sector average. These relative positions may shift depending on future earnings releases and progress toward guidance, and should not be read as an absolute value judgment.
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 2026-08-23
The company holds multiple brands and business areas—Denps (supplements), Biopharm (OEM), Hi&GoGo (Chinese infant food), Areun (junior and family), and JOODOC (dermocosmetics)—allowing weakness in one category to be offset by others.
It has diversified distribution from a home-shopping focus toward Olive Young, Costco, and Amazon, spreading channel risk. The recent entry into beauty also reduces reliance on the single supplement category.
Subsidiary Biopharm has secured OEM manufacturing volume from Nutricost, a top-selling Amazon brand, and expanded production capacity through a new Pyeongtaek plant. This is viewed as a channel for growing overseas revenue independent of the domestic supplement consumption cycle.
Continued increases in Denmark plant utilization could contribute to margin improvement through economies of scale.
A substantial portion of the company's offline sales is understood to come from Olive Young and duty-free stores, giving it potential linkage to rising pharmacy and H&B-store spending by foreign tourists visiting Korea.
Korea Investment & Securities stated that foreign visitors' pharmacy spending rose 193.2% year-on-year from January to April 2026. This expanding inbound demand could partly offset softness in domestic consumption.
Operating margin fell sharply from 9.5% in 2023 to 3.3% in 2024, demonstrating significant year-to-year earnings volatility. In the second quarter of 2026, even as both revenue and operating profit increased, net income attributable to owners actually declined from the prior quarter.
If revenue growth does not consistently translate into growth in shareholder-attributable profit, uncertainty around earnings forecasting could increase.
The debt ratio rose from 12.8% in 2022 to 33.8% in 2025, a period marked by several acquisitions. Operating cash flow also trended lower, from KRW 24.09 billion in 2023 to KRW 4.95 billion in 2025.
If newly acquired subsidiaries such as JOODOC monetize more slowly than expected, this could translate into greater financial burden.
Both the health supplement and cosmetics markets have low entry barriers, sustaining ongoing competition from new brands.
A significant portion of revenue depends on a small number of major platforms such as Olive Young, Amazon, and home shopping, so changes in bargaining power, fees, or promotional policies at these platforms could affect profitability.
As OEM revenue dependence on specific large clients such as Nutricost grows, changes in that client's ordering policy could have a correspondingly larger impact on results.
Operating a large number of brands and subsidiaries can increase the complexity of integrated management across business units. If profit stabilization at newly acquired subsidiaries such as JOODOC and Hi&GoGo is delayed, this could weigh on overall results.
A recent change in leadership, with a new sole chief executive appointed, is also a factor to monitor for potential shifts in management strategy.
The debt ratio has risen steadily in recent years, and operating cash flow has trended lower since peaking in 2023. Further acquisitions or capital expenditures could increase the need for external financing.
Changes in how profit is allocated between owners and non-controlling interests are also a factor that could affect per-share metrics.
Both the supplement and beauty industries face continuous entry of new competitors due to low barriers to entry. Overseas expansion into markets such as Amazon and China exposes the company to external variables including currency fluctuations, local regulations, and trade policy changes. A renewed slowdown in inbound tourism demand or domestic consumer sentiment could affect offline channel sales.
Check the scale of Nutricost-related OEM revenue recognition and the sales contribution from JOODOC's Amazon and Olive Young channels when third-quarter 2026 results are released.
This is the point to verify whether the Denmark production facility for the Hi&GoGo milk powder brand actually achieved its targeted breakeven within the year.
Verify through the 2026 annual business report whether the company's stated full-year guidance of KRW 300 billion in revenue and KRW 20 billion in operating profit was actually achieved.
Monitor on a quarterly basis whether the divergence between operating profit and owner-attributable net income recurs, and whether it stems from changes in non-controlling interest allocation or one-off costs.
H PIO is pursuing a diversification strategy that layers new businesses—beauty (JOODOC), overseas OEM (Nutricost), and Chinese infant food (Hi&GoGo)—on top of stable growth in its core health supplement business.
Annual revenue rose for four consecutive years through 2025, and the operating margin, which had fallen sharply in 2024, showed a gradual recovery through 2025 and into the first half of 2026.
However, in the second quarter of 2026, even as revenue and operating profit increased, net income attributable to owners declined from the prior quarter, a divergence in earnings quality that warrants continued observation.
The rising debt ratio and slowing operating cash flow are the financial counterpart to recent acquisition activity, and the pace at which newly acquired subsidiaries become profitable will likely be an important variable for future financial soundness.
The company's stated 2026 guidance of KRW 300 billion in revenue and KRW 20 billion in operating profit assumes multiple growth drivers—expanded Nutricost OEM volume, channel growth at JOODOC, and a recovery in inbound consumption—making it worth watching whether these drivers actually materialize in upcoming quarterly results.
Report written 2026-09-05 · Data as of 2026-09-04
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