On the 16th, KB Securities analyzed that Sinopex should be noted for its artificial kidney business (hemodialysis machines) and the development of artificial intelligence (AI) blood cell analyzers.
Im Sang-guk, a researcher at KB Securities, stated in a report on the same day, “Currently, the domestic hemodialysis product market is entirely dependent on imports,” adding, “Sinopex has already obtained approval from the Ministry of Food and Drug Safety for hemodialysis machines through research and development under government national projects, and it is expected to receive approval for CRRT devices and portable artificial kidneys by the end of this year.”
The current incidence rate of end-stage renal disease in Korea ranks third worldwide, with approximately 135,000 hemodialysis patients (as of 2022). The domestic market for hemodialysis-related consumables is estimated at about 1.4 trillion KRW. Sinopex aims to capture more than 30% of the domestic market within five years and has completed the establishment of a GMP facility for a fully automated production line of blood filters (supplying 2 million units annually).
Researcher Im said, “Sales of hemodialysis machines are expected to begin as early as the end of the second quarter this year, with rapid market share growth anticipated,” and added, “The company successfully completed the national project titled ‘Development of a General Blood Diagnosis and Blood Cancer Cell Analysis System Using Peripheral Blood Based on Edge Computing,’ a mid-sized enterprise co-prosperity innovation project under the Ministry of Trade, Industry and Energy, on the 10th of last month.”
He forecasted, “The success of this national project will enable early diagnosis of severe diseases by upgrading cartridges applying blood cell analyzers and lab-on-a-chip technology, allowing blood diagnosis and morphological analysis data of blood to be transmitted to smartphones or printed within about 10 minutes from a single drop of blood.”
Additionally, he analyzed that profitability in existing businesses is also improving. Sinopex recorded consolidated sales of 71.2 billion KRW and operating profit of 8.1 billion KRW in the first quarter of this year, representing an 8.9% decrease in sales and a 14.5% increase in operating profit compared to the same period last year. The operating profit margin, which had been maintained at 8-9% over the past five quarters, reached 11.4% in the first quarter of this year.
He explained, “Sales mainly come from customers’ high-spec and high-quality mobile FPCBs. Although sales slightly decreased due to Q↓ and P↑, profitability improved, achieving a double-digit operating profit margin,” and predicted, “Electric vehicle customers are demanding large-scale connections of over 1 million units, and from 2025 onwards, demand will exceed supply, leading to supply shortages.”
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