[Featured Stock] Dentium Riding the 'Earnings Growth Cycle', Surges 20%

[Asia Economy Reporter Ji Yeon-jin] Dentium is showing a sharp surge on the 3rd as strong performance growth is expected this year.

As of 10:01 AM on the day, Dentium is trading at 75,300 KRW, up 21.06% (13,100 KRW) compared to the previous day.

The sharp rise is interpreted as the effect of securities firms raising their target prices following the announcement of strong earnings the previous day.

Dentium announced that its provisional consolidated operating profit for last year was 69.92244 billion KRW, an increase of 76.5% compared to the previous year. During the same period, sales increased by 27.3% to 292.56589 billion KRW, and net profit rose by 154.8% to 56.62097 billion KRW.

EBest Investment & Securities raised the target price from 91,000 KRW to 93,000 KRW, stating that Dentium has entered an all-time high performance growth cycle and is excessively undervalued compared to competitors. DB Financial Investment also raised the target price to 125,000 KRW, saying the stock price is undervalued relative to earnings.

Shinhan Financial Investment described Dentium’s fundamentals as solid, setting a target price of 90,000 KRW and a ‘Buy’ investment rating. Won Jae-hee, a researcher at Shinhan Financial Investment, said, “The stock price fell sharply due to recent announcements of large-scale concentrated purchases of medical consumables in China and news of Russia’s invasion of Ukraine,” adding, “However, implants are classified as medical devices, not strategic materials, so they are unlikely to be included in export-restricted items.”