[Click eStock] Meta Biomed Set to Achieve Record Results on Supply Chain Shortage Benefits

On July 28, Hana Securities forecast that Meta Biomed is set to achieve its highest-ever quarterly performance in the second quarter of this year, benefiting from supply chain shortages.

Choi Jaeho, a researcher at Hana Securities, stated, "The expected results for the second quarter are sales of 27.8 billion KRW and operating profit of 5.8 billion KRW, representing increases of 9.6% and 56.3%, respectively, compared to the same period last year." He added, "Following the strong performance in the first quarter, the company is expected to continue its record-breaking streak."

By business division, the Dental division is projected to record sales of 13.5 billion KRW, driven by robust sales of its flagship products with a global market share of over 20%, such as the root canal filling materials GP (Gutta Percha Point) and PP (Absorbent Paper Point), as well as resin-based sealer ADSEAL and next-generation MTA sealer CERASEAL.

The Suture division continues to face supply chain shortages. Despite operating at full capacity in two shifts, delivery times are delayed by about six months to one year. Accordingly, sales in this division for the second quarter are expected to reach 12 billion KRW, a 3.8% increase from the previous year.

In other divisions, new products are rapidly gaining traction in the market. Thanks to the launch of the non-invasive local fat lifting device 'DEEPWAVE' and the filler beauty device 'SPONGE' since the first quarter, sales are projected to reach 2.3 billion KRW, a 40.5% increase year-on-year.

Profitability is also positive. With increased sales in the Suture division and the other divisions reaching break-even, the operating profit margin (OPM) is expected to improve by 6.2 percentage points year-on-year to 20.9%.

Annual performance is also expected to maintain solid growth this year. Meta Biomed's projected annual sales for this year are 109.4 billion KRW, and operating profit is 23 billion KRW, representing increases of 16.4% and 33.3%, respectively, compared to last year. The Dental division is expected to achieve sales of 51.1 billion KRW, the Suture division 49.3 billion KRW, and other divisions 9.1 billion KRW.

Choi explained, "In particular, the Suture division, which produces suture threads, operates in a market dominated by about seven global companies, resulting in very high entry barriers and current demand exceeding supply." He added, "With the completion of a second plant scheduled for November this year on the idle site of the Osong R&D Center, production capacity will be further expanded." Furthermore, after the new plant is completed, an automated production line will be introduced to the Dental division, which is expected to contribute to improved profitability.

Additionally, Meta Biomed is accelerating its growth by achieving a turnaround to profitability in the Cosmetic division. He explained, "From 2026, the company plans to produce its own bioabsorbable polymer material PDO (Polydioxanone) filler, which is currently under development, further expanding its growth potential." He added, "Since the company already produces suture threads and lifting threads using this material, it is expected to secure advantages in cost and price competitiveness."

Choi further commented, "The expected price-to-earnings ratio (P/E) for 2025 is 7.6 times, indicating that the company's value remains undervalued."