[Click eStock] Iruda, 800 Equipment Units Sold "Second Half Earnings Growth Cycle"

[Asia Economy Reporter Lee Seon-ae] Hana Financial Investment forecasted on the 7th that Iruda's sales this year will reach 44 billion KRW, a 43.5% increase compared to the previous year, and operating profit will surge to 8.5 billion KRW, a 111.6% increase year-on-year. However, no investment opinion or target price was provided.

Iruda, established in 2006, is a medical device manufacturing and sales company focusing on developing skin beauty medical devices based on laser and radio frequency (RF) energy. Its main products include ‘VIKINI’, ‘FRAXIS’, ‘Secret RF’, ‘Secret DUO’, and ‘FRAXIS DUO’. The company sells products in 50 countries through over 60 global distribution networks, with the United States, the largest global aesthetic market, as its primary sales region. In 2017, Iruda successfully entered the U.S. market by signing an exclusive contract for Secret RF with Cutera (CURT.US). As of 2021, the sales composition by product was 25% RF medical devices, 29% laser medical devices, 25% combined medical devices, and 21% consumables and others.

Iruda continues steady growth centered on the U.S. market through a strong partnership with U.S. aesthetic company Cutera. Starting sales of Secret RF to Cutera in 2017, the company further expanded U.S. sales in the second half of 2020 by supplying the combined medical device FRAXIS DUO. Both products require microneedle tip consumables, so consumable sales grow alongside the increase in installed units. The cumulative number of consumable-using devices sold by Iruda was only 1,236 units in 2017 but increased significantly to 3,739 units as of 2021. Last year, about 800 new devices were sold, marking the highest sales volume ever, and annual consumable sales reached approximately 5.5 billion KRW. From the second half of the year, a full-scale profit growth cycle is expected due to the expansion of consumable sales. Consumable sales in 2022 are projected to reach 9.4 billion KRW.

Researcher Kim Doo-hyun of Hana Financial Investment stated, "In 2022, sales growth of consumable devices for the U.S. market through front-end customers will continue, accompanied by profitability improvement due to the increased proportion of microneedle consumable sales," adding, "With the launch of the next-generation laser device ‘Lipot’ in the second half, product mix improvement is expected, and the operating leverage effect will be significant."