[Click eStock] "Dentium, China-bound Sales Expected to Begin in Earnest"

Daishin Securities forecasted on the 12th that Dentium's sales growth centered on China will begin in earnest. They maintained a 'Buy' investment rating and a target price of 200,000 KRW.

Researcher Han Song-hyeop of Daishin Securities projected Dentium's sales for the first quarter of this year to reach 85.8 billion KRW, a 24.6% increase compared to the same period last year, and operating profit to be 29.6 billion KRW, up 38% year-on-year. While sales slightly missed market expectations, operating profit met the forecasted level.

Researcher Han stated, "Sales growth in China will accelerate from the second quarter," and added, "Among medical device companies, Dentium will benefit the most from the recovery of the Chinese economy." He also analyzed, "Currently, the company holds 22% of its own shares," and "If the government introduces incentive programs aimed at enhancing corporate value, there is a possibility of shareholder-friendly policies."

Researcher Han anticipated that local Chinese companies still lack competitiveness in clinical data and brand reputation, so meaningful market penetration will take more than 2 to 3 years. He explained, "The implementation of volume-based procurement (VBP) has led to price leveling, resulting in a noticeable increase in the quantity of value-segment implants," and "If the domestic Chinese market and real estate economy show signs of recovery, Dentium, which holds a high market share in China, will demonstrate remarkable performance growth." He added, "While Osstem Implant pursues premiumization through its U.S. factory, Dentium aims for sales growth through localization in China and Southeast Asia, so it will benefit more significantly from China's growth."