[Reporter Reading Securities Report] LaMeditech, Will It Thrive Riding the Beauty Device Stock Boom?

Most Comparable Companies Show Higher Growth Rates Than KOSDAQ
"Losses Until Last Year... Expected to Turn Profitable This Year"

LaMeditech is undergoing the public offering process for listing on KOSDAQ. LaMeditech's main business areas are medical and beauty devices. Companies engaged in similar businesses include Biol, Hironics, JC's Medical, and Classys. As these companies have recorded significant stock price increases this year, it is expected to positively contribute to LaMeditech's public offering.

LaMeditech was established in 2012. It successfully commercialized the world's first ultra-compact high-power laser core technology. Its main products include laser skin beauty and medical devices, laser blood collection devices, and other laser skin beauty and medical devices. The beauty device brand name is PURAXEL.

The laser blood collection device "HandyRay Series," designed based on core technology, was selected as an innovative product by the government procurement agency. Additionally, it has obtained global certifications such as the European Conformity (CE) and the U.S. Food and Drug Administration (FDA), as well as successfully registered as a new medical technology with the Ministry of Health and Welfare in Korea.

LaMeditech is offering 1,298,000 shares in its KOSDAQ listing. The desired offering price ranges from 10,400 to 12,700 KRW per share. It plans to raise between 13.5 billion and 16.5 billion KRW. The lead underwriter is Daishin Securities.

LaMeditech is currently operating at a loss. Sales increased from 1.02866 billion KRW in 2021 to 2.91822 billion KRW last year, but operating losses also grew from 1.88113 billion KRW to 3.52565 billion KRW during the same period. Due to the deficit, future projections were used to determine the offering price. Daishin Securities forecasts LaMeditech's sales to increase from 9.24442 billion KRW this year to 14.0642 billion KRW in 2025 and 22.6681 billion KRW in 2026. Operating profit is expected to turn positive this year, recording 1.0499 billion KRW, then rising to 3.62868 billion KRW next year, and reaching 7.63664 billion KRW in 2026.

Based on this, the underwriter selected the desired offering price by applying the price-to-earnings ratio (PER). The estimated net income for 2026 was used, with comparable companies including Hironics, Biol, JC's Medical, Classys, and Wontech. The average PER of these companies, 25.32 times, was applied. A discount rate of 10.54% to 26.75% was then applied to calculate the desired offering price.

Although LaMeditech is a loss-making company, a positive aspect of the public offering is the high stock price growth rates of comparable companies this year. Classys' stock price has risen by 31.92% this year. Biol (22.12%), Hironics (7.41%), and JC's Medical (14.01%) also show strong growth rates. Only Wontech declined by 12.11%, but considering the KOSDAQ's overall growth rate of -1.33% this year, it remains relatively stable.

LaMeditech plans to invest 5 billion KRW of the raised funds in facility expansion and advancement. It will allocate 4 billion KRW to research and development (R&D) and 4.3 billion KRW to sales and marketing. Based on this, R&D will be conducted on hospital-use desk laser blood collection devices, blood collection and blood glucose measurement devices, desk-type multifunctional skin beauty devices, chronic disease-related diagnostic systems, and laser drug delivery systems.