[Market Highlight] Osteonic Surges Over 5% on Export-Driven Growth Momentum

Osteonic, a company specializing in the production of orthopedic implants using metallic materials and biomaterials, is experiencing robust growth driven by exports, which is also boosting its stock price.

As of 9:14 a.m. on July 16, Osteonic was trading at 6,720 KRW, up 330 KRW (5.16%) from the previous trading day.

On this day, Sangsangin Securities stated, "This is a stock that should be purchased steadily from now on and held for the long term," raising its target price for Osteonic from 9,300 KRW to 11,000 KRW.

Ha Taegi, a researcher at Sangsangin Securities, said, "Last year, consolidated sales increased by 23.1% compared to 2023, reaching 34.2 billion KRW, while operating profit rose by 42.2% to 6.9 billion KRW. Recently, the growth rate has been accelerating, mainly due to exports," adding, "Next year, export sales are expected to surpass domestic sales." The main export destinations are 114 distributors in 67 countries, including Germany, Mexico, Singapore, Chile, Thailand, and Taiwan. The proportion of exports to South America, Europe, and Asia is particularly high.

Ha also noted, "Based on this year's estimated earnings, the price-to-earnings ratio (PER) is around 18.6 times," and pointed out, "With annual sales growing at a rate of 20% to 30%, the stock appears undervalued." He further stated, "With exports to Zimmer Biomet in the United States being fully reflected in the second quarter results, the cost ratio is expected to decline and operating profit growth to accelerate in the second half of the year. These factors are likely to be reflected in the stock price, leading to a higher stock price level in the second half of the year."