[Click eStock] "Dentis, Earnings Turnaround This Year... Undervalued Compared to Competitors"

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 13th that it expects Dentis to expand from its existing implant business to new businesses such as digital clear aligner solutions, anticipating continuous growth in the future, and thus presented a buy investment opinion with a target price of 18,300 KRW.

Jeong Min-gu, a researcher at Hana Financial Investment, stated, "Dentis has an expected PER (price-to-earnings ratio) of about 10.9 times this year, showing valuation attractiveness compared to domestic implant competitors, and since a clear earnings turnaround is expected this year from the bottom in 2020, it is a company that requires continuous attention."

Dentis recorded sales of 18.7 billion KRW in the first quarter of this year, a 42.6% increase compared to the same period last year, and operating profit turned positive at 2.9 billion KRW. The recovery of operations in domestic markets as well as in the US and China, along with deferred demand, and the expansion effect of new domestic customers led to improved performance. Domestic sales of Dentis increased by 29.1% year-on-year to 9.3 billion KRW due to the effect of increased new customers. The effect of expanding new regions in the US and the performance contribution of the new clear aligner business is expected to enable steady quarterly growth.

Annual sales for this year are projected to increase by 94.3% year-on-year to 90.8 billion KRW, with operating profit expected to reach 20.3 billion KRW. Domestic sales are forecasted to reach 45.5 billion KRW (+65.5%) this year due to an increase in new hospital transactions and increased market share within existing hospitals. Additionally, North American sales are expected to grow by 47.3% year-on-year to 13.7 billion KRW as new expansions occur from the existing western region to the eastern region.