[Click eStock] "Ray Expected to Rise Every Quarter"

Business Diversification through Digital Dentistry
Daishin Securities "Ray Target Price Set at 45,000 Won"

(Provided by Daishin Securities)

[Asia Economy Reporter Gong Byung-sun] Ray, a dental X-ray company, is attempting to diversify its business areas. Its entry into China through a joint venture is also expected to contribute to growth.

On the 14th, Daishin Securities newly issued a 'Buy' rating and a target price of 45,000 KRW for Ray. The previous day's closing price was 31,750 KRW.

Profitability has been improving since strong performance in the second quarter of this year. Ray experienced negative growth in the first quarter as sales declined from the previous quarter, but in the second quarter, it recorded the highest quarterly performance ever. Researcher Lee Saerom of Daishin Securities said, "In the second quarter, we confirmed a performance rebound exceeding pre-COVID-19 levels across all regions," adding, "With the peak season effect of the medical device sector in the second half of the year, performance is expected to rise quarter by quarter this year." Accordingly, Daishin Securities forecasts Ray's sales this year to increase by 72% year-on-year to 94.8 billion KRW.

Ray is also attempting to diversify its business by building a product line of digital dentistry, which provides equipment, materials, and software that make up digital dental care. If it launches a 3D oral scanner within the year, it is expected to establish a full lineup of digital dentistry products. The transparent orthodontic brand RaceMiler, launched in June, is preparing contracts with 100 domestic hospitals by the end of the year.

(Provided by Daishin Securities)

Future entry into the Chinese joint venture is expected to be a growth momentum. Exports of domestic dental imaging medical devices have recorded an average annual growth rate of 25% from 2010 to last year. Furthermore, China’s strengthening of domestic medical device protection has increased preference for local companies in imaging medical devices, making entry through joint ventures advantageous for brand recognition enhancement.

Researcher Lee said, "Entry into China through a joint venture will serve as a starting point for accelerated growth within China," and added, "It is expected to grow into a mid- to long-term medical company through future acquisitions of new companies."