[Click e-Stock] "Wontech Sets New Quarterly Record...Entering a High-Growth Phase"

On May 13, NH Investment & Securities stated that Wontech has entered a new phase of high growth, achieving its highest-ever quarterly performance in the first quarter of this year.

In the first quarter of this year, Wontech recorded consolidated sales of 37.4 billion KRW, marking a 65.8% increase year-on-year and a 1.7% rise compared to the previous quarter. Operating profit reached 14.6 billion KRW, up 119.3% from the same period last year and 5.5% higher than the previous quarter, resulting in an operating margin of 38.9%. This marks a second consecutive quarter of earnings surprise and sets a new record for the company's highest quarterly performance.

In a report released the same day, Shim Ui-seop, a researcher at NH Investment & Securities, commented, "Despite the seasonal off-peak period, exports of Olizio devices and consumables, particularly through the Thailand subsidiary, increased significantly. We believe Wontech has re-entered a phase of high growth, and we have sharply raised our earnings forecasts accordingly."

The Thailand subsidiary, which successfully entered the market last year with annual sales of 16.2 billion KRW, continued its growth by posting 10.8 billion KRW in sales in just the first quarter of this year. Olizio procedures are receiving strong consumer response locally, and in response, Wontech has recently selected a well-known Thai celebrity as its ambassador and is preparing marketing activities.

Exports to the United States, Japan, and Greater China are also maintaining robust growth. Recently, the OlizioX product obtained TFDA certification in Taiwan, and immediately after certification, an initial order of 50 units was secured, which is expected to be reflected in second-quarter results.

Shim noted, "In the first quarter of this year, a joint venture was established with Chinese company SBT, and the company is pursuing technology transfer for its major laser equipment. If things proceed quickly, technology transfer revenue of approximately 8 billion KRW could be reflected in second-quarter results."

In the domestic market, despite intensifying competition, Wontech is showing signs of recovery, growing 15% year-on-year thanks to the boom in medical tourism and aesthetic procedure markets. Shim analyzed, "We have significantly raised our overall earnings forecasts, and despite the recent share price increase, this year's expected price-to-earnings ratio (PER) remains at 16.4 times, indicating that the company's growth potential and relative undervaluation compared to industry peers remain highly attractive."