[Click eStock] "Vistos Expected to Accelerate Synergy After Change in Largest Shareholder"

On December 23, SK Securities analyzed that expectations for business expansion and earnings recovery at Vistos are rising, following a change in the company’s largest shareholder.

Although the overall growth rate of the medical device market has slowed since the COVID-19 pandemic, SK Securities assessed that the company’s differentiated focus on fetal and neonatal medical devices, as well as momentum from new products, means its potential for mid- to long-term growth remains intact.

Na Seungdoo, a researcher at SK Securities, stated, “In November, it was disclosed that Kosdaq-listed CU Medical Systems acquired a 33.8% stake from Vistos’s major existing shareholders, becoming the largest shareholder. This share transaction appears to be mutually beneficial for both companies.”

He explained that as CU Medical Systems, which has a high proportion of its business in AED-centered emergency medical devices, expands into patient diagnosis, monitoring, and treatment, Vistos will be able to increase sales of its products through CU Medical Systems’ diverse distribution channels. He added, “Rather than overlapping, the products of both companies complement each other, raising expectations that they will evolve into a comprehensive medical device solutions provider.”

Vistos is a specialized manufacturer of fetal and neonatal medical devices and has recently expanded into wearable healthcare devices and treatment devices for ADHD. During the pandemic, the global medical device market grew rapidly, especially for home-use devices, but since the transition to endemic conditions, the pace of growth has moderated somewhat.

Regarding this, researcher Na commented, “It is true that the growth rate of the medical device market has slowed somewhat. However, the market for fetal and neonatal medical devices continues to see stable demand, due to factors such as demographic changes, so there are clearly distinctive factors at play.”

Ultimately, SK Securities analyzed that the key variable determining the direction of the stock price will be whether the company can recover its earnings at the individual level, rather than the growth potential of the broader industry. He emphasized, “The recovery of exports for main products, the approval of new products, and whether these contribute to earnings will be the triggers that determine the direction of the stock price.”

Immediately after the news of the change in the largest shareholder, Vistos’s stock price experienced short-term volatility, but it has since returned to previous levels. Researcher Na noted, “While the share investment by CU Medical Systems and the news of the change in the largest shareholder caused short-term volatility, the stock price has now recovered. Once the change in the largest shareholder is fully completed in January next year, it will be noteworthy as the companies can begin to generate business synergies in earnest.”

In particular, 2026 is expected to be a significant turning point. He predicted, “As certifications for new medical device products are completed sequentially in 2026, expectations for visible new product sales will rise. Since existing fetal and neonatal products have already reached a stable trajectory, whether profitability can be maintained, along with the certification of new products and the diversification of export regions and sales channels, will determine the direction of the stock price.”