[Click e-Stock] "Dio to Accelerate Growth Driven by Expanded Dental Implant Insurance Coverage"

On May 12, IM Securities projected that Dio, a dental implant company, is expected to accelerate its growth due to the expansion of health insurance coverage for dental implants and related policy benefits.

Lee Sangheon, a researcher at IM Securities, stated, "The policy to expand health insurance coverage for dental implants is becoming more concrete in this presidential election, and as Korea enters a super-aged society, Dio is likely to benefit significantly." He further analyzed, "In particular, the senior citizen policy pledge announced by Lee Jaemyung, the presidential candidate of the Democratic Party of Korea, includes lowering the eligible age for dental implant health insurance and increasing the number of implants covered."

Currently, dental implant insurance benefits are provided for up to two implants per person for partially edentulous patients aged 65 and older. In the 2022 presidential election, candidate Lee Jaemyung pledged to gradually lower the eligible age for implant coverage from the current 65 to 60, and to provide an additional two implants for those aged 65 and older, allowing health insurance to cover up to a total of four implants.

Additionally, Lee analyzed that Dio’s consolidated performance this year will accelerate profitability improvement, with sales expected to reach 173.5 billion won (up 45.1% year-on-year) and operating profit at 26.3 billion won (returning to profitability). Regarding this performance growth, he explained that domestic sales are expected to rise sharply year-on-year due to a base effect from one-off factors, and that overseas sales growth in China, India, and Turkiye is also accelerating.

First, in the case of China, Lee projected that growth will begin in earnest this year and that the company will achieve an average annual sales growth rate of over 45% through 2027. He explained that this is due to strengthening the sales network through new agents, expanding distribution coverage, diversifying the product lineup, and improving positioning, all of which will make sales growth more visible.

In addition, Lee forecast that India will achieve an average annual sales growth rate of over 30% through 2027, and that Turkiye will also achieve an average annual sales growth rate of over 30% through 2027.