[Click eStock] "Osteonic, Accelerating Growth in the Human Implant Market"

Sangsangin Securities analyzed on the 24th that Osteonic is showing strong growth through export expansion and new product launches.

Researcher Ha Taegi of Sangsangin Securities stated in the report, "Osteonic has a product lineup of metals and biomaterials that form the foundation of the human body, making it highly likely to achieve an annual growth rate of around 20%."

Osteonic produces orthopedic metals (stainless steel, titanium) and biomaterials (PEEK, Biocomposite). Last year, consolidated sales are expected to reach 34.2 billion KRW, a 23.1% increase from the previous year, and operating profit is projected to rise 42.2% to 6.9 billion KRW. The export ratio stands at 43.1%, expanding its presence in the global orthopedic implant market.

As of last year, in the metal materials segment, cranio-maxillofacial (CMF) accounted for 27.7% and trauma & extremities 35.5%, while in the biomaterials segment, CMF accounted for 5.7% and sports medicine 29.4%. Major export countries include Germany, Mexico, Singapore, Chile, Thailand, Taiwan, and 67 other countries. Researcher Ha forecasted, "Sales in existing regions are steadily increasing, and once approval is obtained in China by 2025, exports through B.Braun will significantly increase."

Last year’s sales of CMF products are expected to be 9.5 billion KRW (29.8% increase) in metal materials and 2.0 billion KRW (4.9% increase) in biomaterials. Ha analyzed, "Due to the product characteristics requiring precision, competition is low, and stable growth is expected."

Trauma & Extremities products, made of titanium used for fracture site alignment and fixation, are expected to have sales of 12.1 billion KRW (19.3% increase) last year, with exports accounting for 5.1 billion KRW (30% growth).

Sports Medicine products represent a promising field with a global market size of 7 trillion KRW. Osteonic signed a contract with Zimmer Biomet in 2020, received US FDA and European CE approvals in 2021, and has shown a significant increase in exports since 2023. Last year’s sales are projected at 10.1 billion KRW (21.2% increase).

Notably, a new product received US FDA approval last year, and exports to the US through Zimmer Biomet are expected to begin from March to April this year. Researcher Ha analyzed, "With the US FDA approval as a milestone, exports to the Latin American market will also increase."

Meanwhile, Osteonic plans to complete factory expansion by the end of 2025. Through this, it will secure production capacity of 75 billion KRW for metal materials and 65 to 70 billion KRW for biomaterials, establishing production facilities worth a total of 150 billion KRW. This year’s expected sales are 44.1 billion KRW (28.9% increase) and operating profit 10.2 billion KRW (47.3% increase). Researcher Ha stated, "The combination of growth in existing markets and entry into new markets will further increase the sales growth rate," and forecasted, "First quarter sales this year will be 9.2 billion KRW, up 19.6% year-on-year, and operating profit will be 1.9 billion KRW, up 65.9%."