[Click eStock] JVM, Record Quarterly Earnings and Top Choice for Medical Industry Automation

[Asia Economy Reporter Lee Seon-ae] IBK Investment & Securities announced on the 29th that it maintains a Buy rating and a target price of 31,000 KRW for JV M.

Geonjae Lee, a researcher at IBK Investment & Securities, explained, "The target price was calculated by applying a target multiple of 18 times to the 12-month forward earnings per share (EPS) of 1,766 KRW. We believe this is reasonable given the reaffirmed overseas performance growth of the dominant domestic No. 1 operator."

JV M's preliminary Q2 results showed sales of 37 billion KRW (a 36.7% increase year-on-year) and operating profit of 5.9 billion KRW (a 76.9% increase), demonstrating a steep growth trend for the second quarter following Q1. This strong performance was achieved in both domestic and overseas businesses, with the domestic division growing 30.4% year-on-year and the overseas division growing 45.6%. This year is expected to be the first year of JV M's growth story, with growth expected to be realized through stable growth in the domestic division and rapid growth in the overseas division.

In particular, JV M is regarded as a top choice company for automation in the medical industry. The researcher emphasized, "As the company, which shows a seasonal pattern of lower performance in the first half and higher in the second half, closed the first half with record-high results, expectations for upward revisions of forecasted performance are likely to increase." JV M's expected performance for this year is sales of 146.7 billion KRW (a 26.6% increase) and operating profit of 24 billion KRW (a 92.1% increase), with sales and operating profit forecasts revised upward by 3.7% and 6.7%, respectively, compared to previous estimates. The repeated confirmation of economies of scale and profit margin improvements due to expanded export performance suggests that market interest will continue with the seasonal peak in the second half.