[Click eStock] "Wontec, Ollisio Destined to Succeed"

Heungkuk Securities analyzed on the 23rd that Wontec recorded approximately 200 orders for Oligio devices in the first quarter, indicating that success is inevitable.

In a report on the same day, Nayoung Lee, a researcher at Heungkuk Securities, stated, “Wontec, established in 1999, primarily produces RF lifting devices called Oligio and laser devices called PicoCare,” adding, “Since the end of last year, the stock price has risen rapidly, and the current price-to-earnings ratio (PER) is 36.7 times, which is somewhat burdensome.”

However, the researcher noted, “Currently, orders for Oligio are increasing rapidly, and a multiple contraction due to profit growth is expected. If this is proven through the first quarter’s performance this year, further market capitalization growth can be anticipated.”

He explained why Oligio is bound to succeed. He said, “The procedure cost for Oligio is about 800,000 to 900,000 KRW for 600 shots at large clinics in Gangnam, which is much cheaper than Thermage’s procedure cost (600 shots at 2,000,000 KRW),” and added, “Considering the cumulative domestic sales volume of Shurink, the current cumulative domestic sales volume of Oligio, about 1,000 units, is still in the early stage of equipment supply.”

Furthermore, he explained, “In addition to Oligio, Wontec also develops and sells laser devices such as PicoCare and La Vie en, thus maintaining a diversified portfolio,” and “More than 80% of laser devices are exported overseas; La Vie en mainly sells in Brazil, while Pico devices have a high proportion in China.”

He continued, “Oligio recorded annual equipment sales of 410 units last year, and it is understood that the number of orders so far this year is slightly less than 200 units domestically and internationally,” adding, “Considering the domestic equipment supply price of Oligio is 55 million KRW per unit, equipment sales revenue is expected to be about 11 billion KRW. However, overseas sales including Taiwan are recognized after deducting agency commissions and shipping costs, so sales are expected to be lower than the simple calculation.”

Nevertheless, he added, “Sales growth of more than twice compared to 4.4 billion KRW in the first quarter of last year is expected,” and “As the number of Oligio users increases, the sales volume of consumable tips is also rapidly increasing, with a steady supply of about 7,000 units per month since January this year.”