[Click eStock] "IL Science, Growth Expected in Hair Loss Medical Devices"

[Asia Economy Reporter Hyunseok Yoo] SangSangIn Securities announced on the 6th that they expect growth in medical devices for hair loss by IL Science. They did not provide an investment opinion or target price.

IL Science developed silicone lenses for LEDs in 2015. They have the capability to produce customized products for clients from design to manufacturing and evaluation of silicone lenses for LEDs, and they secured cost competitiveness by independently developing a process (dispensing technique) that allows production without molds.

SangSangIn Securities identified IL Science's growth drivers as automotive headlights and hair loss treatment devices. Kim Jang-yeol, Head of Research Center at SangSangIn Securities, said, "The hair loss treatment device (LED scalp care mask 'Polynic') is a mid-to-short-term item that officially started sales last month. We expect visible results for automotive headlights in the second half of next year; tests with domestic clients have already been conducted, and additional client engagements are underway." He added, "We expect it to contribute significantly to performance starting in 2022."

Especially, the hair loss medical device is expected to be a mid-to-short-term momentum driver. He explained, "The difference from other companies' products is that it simultaneously applies microcurrent (with proprietary patents) and LED light therapy." He also said, "IL Science acquired a 51% stake in Aheads, famous for the 'Sangmin Lee Shampoo,' which is currently known as the third-largest company in the industry. By expanding the product lineup from scalp treatment devices to hair loss shampoos, we expect growth as a medical device and B2C company."

He emphasized, "IL Science's main business is government procurement orders for existing LED lighting, and due to its nature, there are limits to expecting significant profit margin increases. However, considering that the average operating profit margin of B2C companies, especially those producing home scalp and skin mask devices, is around 30%, this will help improve IL Science's overall profitability."