Ray expects normalization of overseas sales in Q3..."Operating profit projected to grow 68% this year"

Hana Financial Investment Report, Target Stock Price Up 46%
Operating Profit This Year 21.5 Billion KRW... Up 68% Compared to Last Year

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating on Ray on the 25th, expecting an increase in performance this year, and set a target price of 69,000 KRW, up 46% from the previous target.

An Juwon, a researcher at Hana Financial Investment, explained, "Starting with China in June, additional sales are expected due to export recovery in the second half in the US, Europe, and Japan regions, as well as deferred demand from the first half," adding, "It is also a positive factor that new quarantine business sales will be fully reflected from the third quarter."

Additionally, Ray is a leading company in the digital dentistry market, with a steep average annual growth rate of 33.5% expected until 2022. It has high investment attractiveness as a dental platform company because it can expand to various indications based on treatment solutions (implant guides, clear aligners, etc.).

Second-quarter sales are forecasted to be 16.3 billion KRW, and operating profit 1.4 billion KRW, down 9% and 56% respectively compared to the same period last year. This is because poor second-quarter performance due to COVID-19 is deemed inevitable. However, from the third quarter, a performance rebound is expected due to core business recovery and additional new businesses.

In China, operations normalized from the end of June, and additional deferred orders from the first half are expected on top of existing orders. The US, Europe, and Japan regions are expected to achieve full operational recovery from the third quarter. Ray's quarantine business sales also started from the end of June and are expected to contribute significantly to performance in the third quarter. Accordingly, Ray's third-quarter performance is projected to increase by approximately 103% in sales to 37.9 billion KRW and 136% in operating profit to 8 billion KRW compared to the same period last year.

This year, Ray is expected to achieve sales of 116.2 billion KRW and operating profit of 21.5 billion KRW, increasing by 60% and 68% respectively compared to the previous year. Researcher An Juwon explained, "Additional deferred demand is expected in all regions, centered on China, the core region of digital dentistry in the second half," and added, "It is judged that additional growth momentum has been secured through entry into the new quarantine business."