[Click eStock] "Corentec, Domestic and International Market Growth Expected to Continue"

KB Securities Report

[Asia Economy Reporter Minji Lee] KB Securities on the 25th issued an investment opinion on Corentec, forecasting that the company will continue its growth trend through increased domestic market share and expansion into overseas markets.

Corentec is engaged in the development, manufacturing, and sales of orthopedic artificial joints. Its main products include artificial hip joints and artificial knee joints, which are supplied directly to hospitals or through regional distributors. The company owns its own central technology research institute, enabling technical support for clients, product upgrades, and custom-made surgical instruments.

In the first quarter, Corentec recorded sales of 10.6 billion KRW and operating profit of 900 million KRW, representing growth of 7.1% and 125% respectively compared to the same period last year. Considering the large volume of pre-orders placed in preparation for COVID-19 in the first quarter, the company showed solid sales growth. The profit normalization trend since 2019 is also continuing.

Domestic market share is expected to continue rising. As of last year, Corentec holds a solid first place with a 28.4% share in the hip joint market. In the knee joint market, it ranks around 3rd to 4th with a 10.5% share. With anticipated domestic market growth due to aging population, Corentec is expected to increase its market share based on price and technological competitiveness compared to rivals. KB Securities analyst Byunghwa Lee explained, “Corentec’s products are evaluated as having no technological gap compared to global competitors,” adding, “Prices are about 10% lower, which is advantageous in customer response.”

Growth in overseas markets is also expected. With the lifting of lockdowns, more active efforts are anticipated to secure new distribution channels in major overseas markets such as the United States and China. Analyst Lee said, “Sales are expected to increase mainly through general hospitals that jointly developed artificial joints for Americans, and the sales regions in China are expected to expand from 5 to 10 provinces,” further analyzing, “Entry into new markets such as Japan and Russia is also anticipated.”