[Market Focus] Meta Biomed, Medical Biomaterial Shortage... Expansion After Expansion to 'Level Up' Market Cap

Shares of Meta Biomed are on the rise. It appears that a securities firm's analysis, which pointed out that supply is unable to keep up with demand for surgical sutures, is influencing the stock price. Meta Biomed is seeing increased sales through its global network spanning approximately 110 countries worldwide. More than 90% of its annual revenue comes from overseas, making it an export-driven company.

As of 9:22 a.m. on May 8, Meta Biomed was trading at 5,130 won, up 495 won (10.68%) from the previous trading day.

On this day, Hana Securities analyzed that Meta Biomed will complete its expansion investment this year and continue its growth trajectory.

Choi Jaeho, a researcher at Hana Securities, emphasized, "Sutures are serving as a new growth driver," adding, "Compared to the dental segment, the cost ratio is lower, which is contributing to a gradual improvement in profitability."

Meta Biomed manufactures suture threads used in surgical procedures. Leveraging its core proprietary technologies, the company produces a variety of products, including biodegradable sutures that naturally decompose in the body and antimicrobial sutures designed to prevent infection. The market for biodegradable sutures is an oligopoly dominated by about seven companies worldwide, making the barriers to entry high.

Researcher Choi stated, "Due to the expansion of overseas clients, supply is currently unable to meet demand for sutures," and analyzed, "To respond to increasing overseas demand, the company is expanding a second production plant on a 4,500-pyeong idle site at the Osong R&D Center." He also added, "Additional investment in suture equipment is underway at the existing plant to meet suture demand," and expressed expectations that "from next year, both sales scale and profitability will be elevated to the next level."