Ray, Earnings Bounce Back After Bottoming Out... "Growth Prospects Remain Strong"

[Asia Economy Reporter Hyunseok Yoo] Ray's performance is expected to improve significantly starting in the second half of the year.

According to Hana Financial Investment on the 1st, Ray is projected to record sales of 15.2 billion KRW and an operating profit of 1.4 billion KRW in the third quarter. These figures represent decreases of 18.5% and 57.7%, respectively, compared to the same period last year.

Jung Mingu, a researcher at Hana Financial Investment, stated, "Ray's core business hit bottom in the second quarter, and as business operations normalize rapidly in major export countries (China, the United States, etc.), a recovery in third-quarter performance is expected." However, he added, "Due to delays in business normalization caused by the resurgence of COVID-19 in Europe and delays in sales of new quarantine business products, somewhat sluggish results are anticipated."

Park Jaeil, a researcher at Kiwoom Securities, also noted, "Exports to the Greater China region have normalized since June, and exports to the United States and Japan appeared to have normalized by mid-August. Exports to Europe are expected to resume by October. Starting from the third quarter, the core business is expected to enter a normalization phase."

They also analyzed that there remains potential for achievements in the quarantine business. Researcher Jung emphasized, "If overseas certifications, including domestic KF certification, are secured on schedule within the fourth quarter, unlike domestic competitors, Ray, which has an overseas sales network, still has the possibility of recognizing new quarantine-related sales this year."

In particular, Ray's growth potential remains strong. Researcher Jung Mingu explained, "Ray has established the only full digital lineup domestically and, based on its unique CBCT technology, is conducting equipment contract sales with large franchise hospitals in China and domestic implant companies." He added, "In the future, Ray can expand into various indications (implant guides, clear aligners, etc.) based on the cumulatively installed treatment solutions, thus possessing a sustainable growth business model as a dental platform company." He further stated, "Although performance deterioration due to COVID-19 this year is inevitable, Ray's future growth potential as the leading digital dentistry company in the domestic dental industry remains unchanged."

Researcher Park also emphasized, "Since the performance slump due to COVID-19 is temporary, it is time to focus not on the results but on the entry into the core business normalization phase in the second half and future growth momentum."

Founded in 2004, Ray is a company that provides digital dental disease diagnosis systems and dental treatment solutions.