[Click eStock] "NanumTech, Stable Profit Generation through Portfolio Diversification"

Maintaining Industry Leadership in the AED Market
Aiming for Overseas Expansion by Obtaining Certifications from Japan PMDA and China CFDA

[Asia Economy Reporter Gong Byung-sun] NanumTech is competing for the top market share position in the automated external defibrillator (AED) procurement market. Additionally, the company is diversifying its business portfolio with products such as bone density diagnostic devices and endoscopic image conversion software.

According to Kiwoom Securities on the 7th, 84.2% of NanumTech's total sales are generated from AEDs. The growth trend in the AED market is also positive for NanumTech. The company achieved the number one position in domestic AED procurement sales in 2010 and has maintained the top market share cumulatively since then. Last year, it maintained its leading position in the industry with a 1 percentage point market share difference from its competitors.

NanumTech is also steadily targeting overseas market exports. It has obtained relevant overseas certifications such as the Pharmaceuticals and Medical Devices Agency (PMDA) in Japan and the China Food and Drug Administration (CFDA). Based on this, as of the end of March this year, it secured 14 supply contracts. These supply contracts are expected to contribute approximately $9.05 million (about 10.4 billion KRW) in annual sales going forward.

The AED market, which will contribute to NanumTech's growth, is expanding. The domestic AED market is expected to grow at an average annual rate of 7.96% from last year through 2027. The global market is projected to grow even faster, with an expected average annual growth rate of 8.41%.

Furthermore, the company is attempting to diversify its business portfolio. Kiwoom Securities analyst Heo Hye-min explained, “NanumTech has also entered businesses such as bone density measurement devices, endoscopic image conversion programs, and high-frequency stimulators. If the COVID-19 pandemic ends, the company plans to expand sales scale through business partnerships and field sales.” Kiwoom Securities did not provide a separate investment opinion or target price for NanumTech.