[Click eStock] "J.Cys Medical, Attention on Potential for Expanding High-Margin Products"

Hana Securities analyzed on the 3rd that the expansion potential of Density, a high-margin device, is drawing attention for J-Systems Medical.

J-Systems Medical, established in 2000, is a specialized company in aesthetic medical devices, with a strong lineup of equipment based on various energy sources such as HIFU, non-invasive RF, microneedle RF, and Laser. Overseas sales account for 81.2% of its revenue.

Seongho Kim, a researcher at Hana Securities, stated in a report on the same day, “The non-invasive RF Density is a high-priced device compared to existing HIFU and microneedle RF devices. It received FDA approval in the US last August and signed a contract with local Reveal Laser, reflecting in the company’s performance since the fourth quarter of last year,” adding, “If the proportion of high-margin devices like Density increases in the future, a significant operating leverage effect is expected.”

He added, “The new product Density has secured a minimum order quantity (MOQ) of about 150 units through its US partner by July this year,” and predicted, “Considering the past success of Potenza, the MOQ for Density is also expected to continuously increase, driving North American sales.”

He also explained that sales of Density are expected to strengthen in Brazil and Europe, and new country entries by device are anticipated to continue this year.

He said, “This year, J-Systems Medical is expected to record sales of 174.8 billion KRW and operating profit of 50.2 billion KRW, representing increases of 22.2% and 38.2% respectively compared to the previous year,” and added, “With an expected price-to-earnings ratio (P/E) of about 13 times this year, the stock is undervalued considering the effects of the new product and expectations for new country entries.”