[Click eStock] "Rimed, Clear Earnings Improvement and Business Diversification Results Expected"

[Asia Economy Reporter Ji-hwan Park] Yuanta Securities evaluated on the 31st that Remed’s future earnings expectations are increasingly rising due to clear performance improvements and diversification of business areas.

Researcher Juwon An of Yuanta Securities stated, "Q2 sales were 5.3 billion KRW, operating profit was 200 million KRW, representing a 105.4% increase year-on-year and a turnaround to profitability." Sales of the chronic pain treatment segment, Neuromagnetic Stimulator (NMS), led external growth with sales of 3.3 billion KRW, up 110% compared to the same period last year. The aesthetic (CSMS) segment also showed a quarterly sales increase, reaching 1.6 billion KRW.

With sales expansion, operating profit turned positive, showing clear performance improvement since the low point in Q4 last year. Along with this, Remed is continuously expanding its product portfolio by obtaining domestic and international certifications for new products such as the aesthetic device (PERFECT) and chronic pain treatment device (COMPACT2).

Remed is a company that manufactures medical devices that treat and rehabilitate various diseases through non-invasive stimulation by generating a strong magnetic field. While sales mainly come from the chronic pain and aesthetic fields, there is great anticipation for the brain rehabilitation business targeting depression, ischemic stroke, and vascular dementia. Remed is the domestic leader in the TMS field and was the first in the world to develop home-use TMS. Currently, the TMS for depression treatment has been submitted for FDA approval in the U.S., and if approved in the future, rapid sales expansion is expected. Researcher Juwon An evaluated, "Remed is a company developing treatment devices beyond simple medical devices and drug therapy, so its business expansion potential is expected to be very large."

This year, Remed’s performance is expected to reach sales of 21.6 billion KRW and operating profit of 3.6 billion KRW, increasing by 30.1% and 113.3% year-on-year, respectively. As the impact of COVID-19 gradually subsides, sales growth across all business divisions is anticipated. Researcher Juwon An emphasized, "The CSMS division is expected to benefit from Allergan’s strengthening of its aesthetic business, and attention should be paid to Remed’s mid- to long-term growth potential through the expansion of the domestic and international electronic medicine market, diverse product lineups, and securing global major partners rather than just short-term performance."