[Click eStock] Dentium, Solid Performance and Unburdened Stock Price

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 26th that it maintains a buy rating on Dentium and raises the target price from the previous 83,000 KRW to 90,000 KRW. The corporate value, applying a target price-to-earnings ratio (Target PER, the average 12-month expected PER of major domestic and international implant companies) of 21.6 times to the 12-month expected controlling shareholder net profit of 46.2 billion KRW, is 999.4 billion KRW.

Researcher Na Gwan-jun of NH Investment & Securities stated, "According to the Korea Customs Service export-import clearance standards, monthly exports hit a record high in June this year, and the growth trend of Chinese implant exports is expected to continue for about a year." He added, "Dentium has the highest proportion of sales to China among domestic implant companies, and high export growth centered on emerging markets is expected in the second half of the year. Compared to other companies, its valuation attractiveness is high, so we recommend buying."

Dentium's consolidated sales for the second quarter are estimated at 68.4 billion KRW (+32.9% y-y, +27.2% q-q), operating profit at 14.1 billion KRW (+113.1% y-y, +32.7% q-q, operating margin 20.6%), in line with performance consensus. Although advertising expenses are expected to increase due to offline marketing activities such as participation in SIDEX (Seoul International Dental Equipment Exhibition) and the Henan Province (河南省) Expo in China, exports to emerging countries such as China and Russia are growing rapidly, so both sales and operating profit are expected to increase.