[Click eStock] "Wontec, Focus on High Growth in Overseas Sales This Year"

Ebest Investment & Securities analyzed on the 14th that Wontec is likely to have high visibility of overseas sales high growth.

Researcher Eun-ae Jo of Ebest Investment & Securities stated in a report on the same day, “Wontec recorded sales of 118.4 billion KRW and operating profit of 46 billion KRW last year, increasing by 45% and 72% respectively compared to the previous year,” and explained, “The sales of Olizio and tips grew rapidly, resulting in a significant operating leverage effect.”

She analyzed that interest in Wontec’s overseas sales high growth is increasing this year. The expected sales and operating profit for this year are 157.4 billion KRW and 63.5 billion KRW respectively, which are expected to increase by 33% and 38% compared to the previous year.

She forecasted, “Since the sales volume of tips is increasing faster overseas compared to domestic sales relative to the cumulative overseas sales volume of Olizio equipment, considering the expected cumulative overseas equipment sales volume this year, the visibility of sales growth for Olizio equipment and consumables will be high for the next few years.”

She added, “Wontec’s stock price level is undervalued compared to peer companies,” and predicted, “The rebound in tip sales volume, a key variable for profit growth, has been confirmed, and this year, overseas expansion for additional growth (Brazil Olizio, China La Vie) is underway in Thailand, Taiwan, Malaysia, Japan, so as overseas business performance is confirmed numerically, the stock price is likely to rebound from the lower end of the price-to-earnings ratio (PER) band.”