[Click eStock] "Curexo, Robot Sales and Profitability Recovery Are Key"

On the 17th, Korea Investment & Securities analyzed that Curexo experienced a slowdown in sales and an increase in research and development expenses due to the medical sector strike in the first quarter. The recovery of robot sales and profitability is crucial, and overseas approvals are progressing as planned.

The first quarter 2024 results recorded sales of 13.9 billion KRW and an operating loss of 1.6 billion KRW. Sales by each business division were 5 billion KRW for medical robots, 2.6 billion KRW for implant distribution, and 6.4 billion KRW for trade, showing a decline across all divisions compared to the same period last year. In particular, the medical robot division sold only 12 units, a 48% decrease from 23 units in the first quarter of last year, affected by the domestic medical sector strike and economic downturn. Operating losses widened due to increased fixed cost burdens from decreased sales and higher research and development expenses.

At the corporate briefing, investors’ main concerns were summarized as the growth prospects of the medical robot division, the progress of approvals, and the turnaround to profitability in the medical robot business. Medical robot sales are expected to gradually improve from the first quarter low point. Although the impact of the domestic medical sector strike will continue, deliveries of previously delayed shipments are expected to begin partially from the second quarter.

It was also analyzed positively that new orders have arisen in Russia and Malaysia, where approvals were obtained last year. The approvals for Qubis-Joint in the United States and Japan are progressing as planned. In the U.S., under the leadership of the affiliate Think Surgical, submission of review documents is planned for the end of the second quarter or the third quarter. If approval is obtained by the end of this year, sales could be reflected within the year. In Japan, partner Kyocera is scheduled to submit documents by the end of June, aiming for approval by June next year, one year later. A turnaround to profitability in the medical robot division is expected as early as the second quarter. In addition to the leverage effect from increased sales volume, normalization of the expanded research and development expenses in the first quarter, cost reduction through Neuromeka, and favorable dollar exchange rates are expected to expand profit margins.