Promising Small and Mid-Cap Stocks in September... Pharmariseo, Vuno, BH, Lutronik, and More

[Asia Economy Reporter Lee Seon-ae] Kiwoom Securities' Growth Company Analysis Team has identified promising categories for September, including beneficiaries of the expanding skin beauty market, beneficiaries of the digital healthcare industry growth, and mobile component stocks expected to experience a performance turnaround and re-rating due to new product effects.

According to Kiwoom Securities on the 11th, the Growth Company Analysis Team recommended Pharmarise, Vuno, and BH as top picks among small and mid-cap stocks for September. They also highlighted Lutronik, Life Semantics, and Optrontec as stocks of interest.

Additionally, they noted the need for continued attention to Ace Tech, the biggest beneficiary of the global 5G investment ramp-up in the second half of the year, and MRO, the number one domestic purchasing SCM company, which is seeing a rise in operating profit margins due to broad customer base expansion and increasing AI and cloud sales ratios.

They emphasized the importance of focusing on the skin beauty market, which is expected to continue growing through the 'With Corona' phase, as non-face-to-face activities via video calls have increased since the pandemic, coining the term 'Zoom Boom' due to the sharp rise in plastic surgeries and procedures.

The Growth Company Analysis Team stated, "Notable companies include Pharmarise, expected to benefit from the launch of a new skin beauty product (Rejuran HB) in the second half and sales growth of joint treatment injections (Conjuran)," and added, "Lutronik, which produces various skin/beauty medical devices such as lasers, radiofrequency (RF), electrical muscle stimulation (EMS), and high-intensity focused ultrasound (HIFU), is experiencing rapid profitability improvement following a performance turnaround."

They also highlighted the need to pay attention to companies enhancing competitiveness by building business models based on medical data in the increasingly sophisticated digital healthcare industry, which integrates artificial intelligence and big data technologies.

These companies include Vuno and Deepnoid, which are proactively responding in the CDSS (Clinical Decision Support System) field with AI solutions for medical imaging, and Life Semantics, which has established a full lineup of digital health services based on a platform that integrates fragmented medical data in the PDSS (Patient-Driven Health Management Program) field.

They assessed that the foldable phone market has entered a full-fledged growth phase as the new foldable phone launched in August continues to succeed, and emphasized the need to focus on companies that can benefit from Apple’s new product launches, growth in automotive electronics sales, and entry into the autonomous driving supply chain, compared to domestic mobile component companies with a high proportion of smartphone OEM.

They identified Finetechnics, KH Vatec, BH, and Sekyung Hitech as foldable phone beneficiary companies. Optrontec, MCNEX, Amotech, and BH, which are expected to see sales growth related to automotive electronics and autonomous driving, are also noteworthy. Among these, BH was presented as the top pick stock, as it is expected to benefit simultaneously from foldable phone and Apple new product effects as well as the expansion of automotive electronics sales.