[Market Focus] Metabiomed Secures Multiple Contracts in 3.6 Trillion Won Suture Market Amid 'Shortage'...Breaking Out of Undervaluation

Metabiomed is showing strong performance. This appears to be influenced by a securities firm's analysis report, which stated that the company is undervalued compared to its peers.

As of 9:59 a.m. on September 8, Metabiomed was trading at 5,870 won, up 590 won (11.17%) from the previous trading day.

Park Jongseon, a researcher at Eugene Investment & Securities, stated, "Metabiomed's stock is trading at a price-to-earnings ratio (PER) of 7.6 times based on this year's expected earnings," adding, "This is a significant discount compared to the average PER of 20.9 times for domestic peers."

Metabiomed is estimated to achieve consolidated sales of 110.3 billion won and operating profit of 26.5 billion won this year. This represents an increase of 17.2% and 53.7%, respectively, compared to last year. The suture business division has achieved an average annual growth rate of 28.2% from 2021 to 2024. The company is targeting an average annual sales growth rate of 20% through 2030.

Researcher Park explained, "Bioabsorbable (absorbable) sutures are products that are harmlessly decomposed and disappear in the body after a certain period following surgery," and added, "Metabiomed produces synthetic suture filaments." He continued, "The global market size for bioabsorbable synthetic sutures is estimated at approximately 3.6 trillion won, with the domestic market at 33 billion won," and noted, "Seven companies are competing globally."

He further stated, "The suture business division continues to face supply chain shortages," and added, "As sales from the highly profitable suture business division increase, profit growth is expected to accelerate."

Researcher Park said, "We expect significant sales growth next year," and explained, "To respond to the suture market shortage, a new second production plant will be completed in November this year."

Exports account for as much as 88.9% of the suture business division's sales. Park analyzed, "Non-absorbable sutures are being replaced by absorbable sutures, and animal-derived sutures (catgut) are being replaced by synthetic sutures, resulting in an average annual growth rate of 4% in the bioabsorbable suture market." He added, "Market demand is increasing, shifting from general sutures to functional sutures and antimicrobial threads," and emphasized, "Metabiomed is signing multiple contracts to boost sales of its existing functional products."

He also introduced, "We are developing suture products tailored for robotic surgery and special functions," and added, "We are responding to market changes by focusing on functional antimicrobial threads, mono products, and specialty sutures, which are priced at more than twice that of existing products."