[Click eStock] "Meta Biomed Faces Supply Shortage Amid Surging Demand"

On May 8, Hana Securities analyzed that Meta Biomed will complete its expansion investments this year and continue its growth trajectory.

Choi Jaeho, a researcher at Hana Securities, stated, "Meta Biomed's sales increased from 58.8 billion won in 2021 to 94 billion won last year," and explained, "The operating margin, which was only 8.4% in 2021, rose to 18.3% last year."

He added, "Innovation through diversification of the product portfolio has driven growth," and noted, "Sales of sutures increased from 20.2 billion won in 2021 to 42.5 billion won last year." He emphasized, "Sutures are serving as a new growth engine," and pointed out, "Compared to the dental sector, the lower cost ratio of sutures is contributing to gradual improvement in profitability."

Meta Biomed manufactures suture threads used for post-surgical stitching. Utilizing its core proprietary technologies in sutures, such as bioresorbable sutures that naturally decompose in the body and antimicrobial sutures for infection prevention, the company produces a diverse range of products. In the case of bioresorbable sutures, the global market is an oligopoly dominated by about seven companies, making the entry barrier high.

Researcher Choi analyzed, "Due to the expansion of overseas clients, the supply of sutures cannot keep up with demand," and explained, "To meet the increasing overseas demand, the company is expanding its second production plant on a 4,500-pyeong idle site at the Osong R&D Center." He also added, "To respond to the demand for sutures, additional suture equipment investments are being made at the existing plant," and expressed his expectation that "from next year, both sales scale and profitability will be elevated to a new level."

He estimated that next year Meta Biomed will achieve sales of 104.1 billion won and an operating profit of 20.1 billion won. This represents an increase of 10.7% and 16.7%, respectively, compared to this year.