[Click eStock] "Rimed, Annual Operating Profit Expected to Increase 100% YoY... Full-Scale Growth of Aesthetic Business Anticipated in Second Half"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment stated on the 29th that Remed is expected to see its annual operating profit increase by approximately 100% compared to the previous year, driven by the full-scale growth of its aesthetic business starting in the second half of the year.

Remed is a medical device development and manufacturing company specializing in non-invasive stimulation methods for the treatment and rehabilitation of brain diseases and muscle pain. Established in 2003 with the goal of developing TMS (Transcranial Magnetic Stimulation) devices to treat intractable brain diseases such as depression and dementia through electronic stimulation, Remed's TMS product ALTMS has obtained European CE certification and is sold in Europe, China, Japan, and other regions. Additionally, the company has expanded its product lineup by developing NMS (Neuromuscular Stimulator) for chronic pain treatment and CSMS (Core Strength Stimulator) for aesthetic purposes. The main customer for the NMS and CSMS businesses is the German company Zimmer, and through ODM contracts, Remed supplies components for emFieldPro (NMS), ZField Dual (CSMS), and CoolTone (CSMS). As of the first half of the year, the sales distribution by major business units was TMS 900 million KRW (11%), NMS 5.4 billion KRW (62%), CSMS 2.1 billion KRW (24%), and others 300 million KRW (3%).

The supply of CoolTone, which had temporarily stopped, is expected to resume from the fourth quarter. Choi Jaeho, a researcher at Hana Financial Investment, analyzed, "The resumption of CoolTone supply to Allergan is expected in the fourth quarter, and a recovery in sales in the aesthetic sector is anticipated."

This year, Remed's sales are projected to increase by 27.7% year-on-year to 21.2 billion KRW, and operating profit is expected to rise by 99.5% to 3.4 billion KRW. Researcher Choi Jaeho explained, "This is due to the expected resumption of CoolTone ODM supply in the fourth quarter and stable NMS sales in the second half." He emphasized that despite the export gap for CoolTone, Zimmer's NMS products have driven Remed's sales growth, and with the anticipated supply of CoolTone components from the fourth quarter, sales growth in the aesthetic business appears feasible.