[Click eStock] "Dentium, the Path to High Growth... Stock Price Undervalued"

NH Investment & Securities maintained a 'Buy' rating on Dentium on the 20th and raised the target price by 33% from the previous level to 200,000 KRW.

Dentium's first-quarter revenue is expected to be 74.1 billion KRW, with an operating profit of 20.7 billion KRW, falling short of consensus. This is attributed to poor exports to China at the beginning of the year due to the COVID-19 situation in China, which has led to continued weak performance since the fourth quarter. However, a recovery trend has been confirmed since March, and performance improvement is expected from the second quarter onward.

Dentium is currently estimating the dental implant markets in emerging markets such as China, India, Vietnam, and T?rkiye. While the economy and aging population are growing, the actual penetration rate of implant treatments remains very low, suggesting that the company could benefit from a first-mover advantage when the market begins to grow significantly in the future.

In the global medical device stock market, the dental sector shows top-tier returns. It commands high multiples based on healthcare essentials, aging conditions, and the opening of emerging markets.

Byung-guk Park, a researcher at NH Investment & Securities, analyzed, “Despite the stock price increase, Dentium, the domestic market leader, has a price-to-earnings ratio (PER) of 15 times in 2023, still showing a large gap compared to Straumann’s 43 times. Growth and profitability are advantages for Dentium, and a re-rating of dental companies centered on Dentium is expected.”