[Click e-Stock] "Wontech Continues Record-Breaking Performance Thanks to Oligio Effect"

On July 15, NH Investment & Securities analyzed that Wontech is expected to continue achieving record-breaking results, as its monopolar RF device "Oligio" is gaining popularity in both domestic and international markets.

Shim Eui-seop, a researcher at NH Investment & Securities, stated, "The monopolar RF procedure received a strong consumer response following the launch of Oligio by the company in 2020, after Thermage FLX," and added, "Since 2022, the market has expanded due to the penetration and intensified competition from rival devices. However, high procedure costs have served as a barrier to mass adoption."

However, since last year, procedure prices have declined, leading to a rapid increase in demand and accelerating the popularization of monopolar RF procedures. Shim explained, "The company appears to have reflected this trend by selecting BIBI, a popular singer and actress among the MZ generation, as the global ambassador for the Oligio brand."

The popularity of Oligio is rising not only in Korea but also overseas. Marketing events held in Thailand in May and June were highly successful, and brand awareness of Oligio is gradually spreading to neighboring countries, with Thailand at the center. Shim stated, "Strong overseas sales growth is expected to continue, particularly in Southeast Asia," and added, "In Korea as well, with new model marketing starting this month, the Oligio brand is expected to gain further recognition, leading to increased procedures and significant sales growth."

Buoyed by these favorable market conditions, Wontech is expected to set a new quarterly record for the second quarter. Shim analyzed, "Second-quarter revenue is projected at 38 billion KRW, up 31.0% year-on-year, and operating profit is expected to reach 15 billion KRW, an increase of 113.6%, marking the third consecutive quarter of record results. In the third quarter, technology transfer income will be reflected, and another record-breaking quarter is anticipated."

In the second half of the year, the company is also expected to announce investments in production facilities, further heightening growth expectations. Shim emphasized, "Despite the continued rise in the stock price, the expected PER for 2025 remains at 19.8 times, indicating that the company is still significantly undervalued compared to its growth potential and peers. The ongoing popularization of monopolar RF procedures is expected to drive continued earnings growth and valuation re-rating for the company."