[Featured Stock] "Disappointing Q2 Earnings" Dentium Down Over 4%

Dentium's stock is weak after recording earnings below market expectations for the second quarter of this year.

As of 10:57 AM on the 9th, Dentium was trading at 83,700 KRW, down 3,700 KRW (4.23%) from the previous trading day.

In the second quarter, Dentium posted sales of 111.7 billion KRW and an operating profit of 22.7 billion KRW. While sales increased by 5% compared to the same period last year, operating profit decreased by 14.5%, falling short of market expectations (operating profit of 35.3 billion KRW). The main reason was the recognition of an 8 billion KRW inventory valuation loss in the cost of goods sold due to sluggish sales of digital equipment in China. Additionally, about 5 billion KRW in sales to Russia were deferred to the third quarter, and European sales decreased by 1.1 billion KRW compared to the same period last year, which also had an impact.

On this day, Kyobo Securities lowered Dentium's target stock price to 120,000 KRW but maintained a buy rating.

Researcher Kim Jeong-hyun of Kyobo Securities said, "Overall demand for dental equipment has not yet shown a clear recovery. As a result, the stock prices of global dental equipment companies are also sluggish." However, he added, "Since interest rates are currently in a downward phase, dental patients will eventually return. Looking for signs of demand recovery in the second half of the year will help improve future investment returns."