[Click e-Stock] "Dongbang Medical, a Dark Horse in K-Aesthetics... Overseas Growth in Focus"

On April 21, Kiwoom Securities analyzed that Dongbang Medical is expected to enter a phase of full-scale growth driven by its performance in overseas markets.

Dongbang Medical has specialized in the production of disposable acupuncture needles, cupping cups, and other traditional Korean medical devices, and currently holds the leading market share in the domestic market.

Oh Hyunjin, a researcher at Kiwoom Securities, stated, "The company is the market leader in the domestic traditional Korean medical device sector," and added, "It has successfully entered the aesthetic device market with absorbable lifting threads and HA fillers, in addition to its core products such as acupuncture needles and cupping cups." Dongbang Medical was the first in Korea to develop and launch absorbable lifting threads (biodegradable sutures) in 2012, and in 2018, it introduced HA fillers, marking a full-scale expansion into the aesthetic device business.

The aesthetic device segment is driving Dongbang Medical's growth. In 2023, filler sales reached KRW 15.7 billion, representing a 104% increase year-on-year, and are expected to grow by an additional 49% to KRW 23.4 billion last year. As a result, the share of aesthetic devices in total sales has reached 59%, surpassing traditional Korean medical devices (41%).

Of particular note is the company's performance in overseas markets. Researcher Oh emphasized, "We are focusing on growth through overseas expansion of aesthetic devices," and explained, "In China, the company is expected to strengthen its local market penetration this year by expanding its product lineup and establishing a joint venture." Dongbang Medical obtained regulatory approval in China in 2022 and subsequently signed a long-term contract with the Shinyang Group, which has helped expand its presence in the Chinese market.

The company is also showing positive developments in Brazil, the world's second-largest aesthetic market. Oh Hyunjin said, "Following ANVISA approval in Brazil, we expect to see a full-scale increase in filler sales," and added, "If approval is granted in the first half of the year as anticipated under existing pre-signed contracts, significant sales are expected to begin in the second half." Currently, Dongbang Medical has completed B-GMP certification in Brazil and is awaiting ANVISA approval, while preparing to distribute HA and body fillers through its partner PHD.

In addition, the lifting thread market, which serves as a complementary product, is also growing rapidly. Oh Hyunjin noted, "As global demand for aesthetic procedures such as fillers and toxins increases, the lifting thread market as a complementary product is also expanding quickly," and added, "We are watching for growth in the United States and Brazil, where lifting threads with technological competitiveness have already received certification."

This year, Dongbang Medical's sales are expected to reach KRW 134.2 billion, with operating profit of KRW 26.4 billion, representing year-on-year growth of 28% and 76%, respectively. Sales from the aesthetic device segment are projected at KRW 85.6 billion, with results expected to accelerate in the second half as exports to Brazil are reflected.

Looking ahead, the company is expected to achieve continued growth beyond 2026 by establishing global sales subsidiaries and expanding its production bases. In light of this, researcher Oh emphasized, "It is time to consider a revaluation of the company's corporate value."