[Asia Economy Reporter Hyungsoo Park] Amid growing concerns over a global economic downturn due to the novel coronavirus infection (COVID-19) crisis, expectations for performance improvement in domestic quarantine and diagnostic-related companies are increasing.
ResearchAlum selected Boditech Med, KM, and Truewin as listed companies expected to achieve 'surprise earnings' this year.
Researcher Seonghwan Choi of ResearchAlum analyzed, "Boditech Med's products quantify virus antibodies and have higher accuracy compared to qualitative rapid kits. With temperatures dropping in the Southern Hemisphere accelerating the spread of COVID-19, there are many sales toward developing countries."
He added, "Boditech Med can expect a second rally following the Korea Disease Control and Prevention Agency's nationwide antibody testing plan. Since the profit margin of COVID-19 diagnostic kits is about 3 to 4 times higher than other products, sales of COVID diagnostic kits are expected to start in earnest from the second quarter."
As demand for masks and protective suits increases, KM's sales are also expected to rise. Researcher Choi analyzed, "In the first quarter of this year alone, 13 million masks were sold, and in the second quarter, sales are expected to increase about fourfold to 50 million masks."
He also anticipated that mask stockpiling demand in preparation for a COVID-19 resurgence is increasing, and overseas sales will grow due to the easing of export restrictions.
Researcher Choi said, "Demand for thermal imaging cameras is increasing in middle and high schools, public institutions, and welfare facilities. Truewin plans to produce 250,000 thermal imaging cameras this year."
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