Stock Price Rebounds 56% This Year
Shares Plunged 65% Last Year Due to Poor Performance
Sales Expected to Increase on Recovery of Medical Robot Exports
The stock price of Curexo, a company selling medical robots, has been rapidly rising this year. Although the stock price fell sharply due to poor performance last year, it appears to be recovering as expectations for improved performance gain momentum this year.
According to the financial investment industry on the 21st, Curexo's stock price has risen 55.6% since the beginning of this year. Considering that the KOSDAQ index rose 7.3% during the same period, the return on investment compared to the market is as high as 48.3 percentage points.
Curexo sells ▲joint replacement surgery robot 'Cubis-Joint' ▲spine surgery robot 'Cubis-Spine' ▲rehabilitation therapy robot 'Morning Walk', among others. They also sell implants, which are artificial joint prostheses.
Cubis-Joint is supplied to domestic general hospitals, specialized hospitals, and implant companies. The company has entered overseas markets through India's largest implant company, Meril Healthcare. It is cheaper than competitors' products and has the advantage of being compatible with artificial joint products manufactured by other companies. Given that the penetration rate of robots in artificial joint surgery is less than 20%, there is significant growth potential.
Cubis-Spine is a spine surgery robot system that guides and supports pedicle screws to precise positions. It allows faster, more convenient, and more accurate surgery compared to traditional surgical methods. It has been supplied not only domestically but also to U.S. spine implant companies and Australian medical companies.
Morning Walk reduces the time needed for patient boarding and preparation for treatment through a seated weight-bearing method. Since its launch in 2015, it has been sold to 19 hospitals nationwide, including Seoul Asan Medical Center, until the end of 2020.
Curexo recorded cumulative sales of 40.7 billion KRW and an operating loss of 4.3 billion KRW in the third quarter of last year. Sales decreased by 27% compared to the same period the previous year, and operating profit turned to a loss. Robot sales slowed due to the medical crisis. The stock price fell 65.3% over the course of last year. The stock price, which was above 18,000 KRW at the end of 2023, dropped below the 6,000 KRW level.
After continuing to decline until the end of the year, the stock price has begun to rebound significantly this year. Kang Kyung-geun, a researcher at NH Investment & Securities, explained, "Thanks to exports, the medical robot business will enter a growth trajectory this year," adding, "Due to the resident doctors' strike, the cumulative number of robots sold domestically in the third quarter of last year was only eight."
He continued, "Normalization of domestic sales will take time," but added, "Exports, which account for about 70% of sales, are expected to recover significantly starting this year."
He emphasized, "Supply to Southeast Asia and Taiwan will begin," and "Medical robot sales this year are expected to reach 45.3 billion KRW, an increase of 155.0% compared to last year."
NH Investment & Securities estimated that Curexo will achieve sales of 85 billion KRW and an operating profit of 3.1 billion KRW this year. Sales are expected to increase by 62.6% compared to last year, and operating profit is expected to turn positive.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
