[Click eStock] "Mediana Leads Medical AI Innovation... Excessively Undervalued"

Hana Securities diagnosed on the 9th that Mediana is leading innovation in medical artificial intelligence (AI) yet is excessively undervalued.

Mediana, established in 1995, is a specialized medical AI solutions company that owns hardware products such as Patient Monitoring Devices (PMD) and Automated External Defibrillators (AED), as well as software like the Central Monitoring System (CMS), a real-time remote patient monitoring service. The company exports medical devices to about 80 countries and has an active global market presence, with overseas sales accounting for 68.7% as of last year.

Researcher Choi Jae-ho of Hana Securities analyzed, "Mediana is a medical AI solutions company recording an operating profit exceeding 10 billion KRW," and added, "It is excessively undervalued." In fact, Mediana recorded an average revenue of 67.8 billion KRW and an operating profit of 11 billion KRW from 2020 to 2023.

Currently, Mediana is fostering its core business around the real-time remote patient monitoring AI predictive diagnostic solutions PMD and CMS. CMS is a system that allows 24-hour real-time observation of patients' biometric signals such as electrocardiogram, heart rate, blood pressure, and oxygen saturation through PMD. Recently, Mediana strengthened its technological competitiveness by launching the 'Medical AI Strategic Alliance' with leading domestic medical AI companies Vuno, JLK, and Selvas AI. Through this collaboration, the development of technology to predict situations such as cardiac arrest and stroke in real time is expected.

Researcher Choi explained, "With the adoption of the company's CMS, manual measurements disappear and real-time AI prediction becomes possible," adding, "The adoption speed of CMS is bound to accelerate." In fact, Mediana has currently introduced its PMD to over 100 domestic hospitals, covering a cumulative 5,200 beds. Additionally, the next-generation CMS is under development aiming for approval from the Ministry of Food and Drug Safety in the second half of this year, with a possible launch as early as next year.

The performance outlook for this year is also positive. Mediana is expected to record sales of 71.9 billion KRW (+26.1% year-over-year) and an operating profit of 9.1 billion KRW (+598% year-over-year). In the PMD sector, orders have been recovering since the first quarter as Medtronic's inventory adjustments conclude, and combined sales of the company’s own brand and ODM are expected to reach 30.9 billion KRW (+27.0% year-over-year). AED sales are projected at 23.8 billion KRW (+44.2% year-over-year), supported by expansion into new markets such as Russia, China, and India.

In the mid to long term, Mediana is also preparing to enter the intensive care unit market. Currently, the domestic intensive care unit market is monopolized by Philips and GE, but Mediana has started developing a PMD (with built-in Transport Monitor) targeting this market. Researcher Choi added, "The interconnection of PMD and CMS is not a choice but a necessity," and "steep growth is expected."