[Click e-Stock] "Dio Set for Full-Fledged Operating Leverage... 30 Billion Won Operating Profit Expected"

On November 17, Leading Investment & Securities forecasted that Dio, a dental implant company, would achieve sales of 211.9 billion won and operating profit of 30.9 billion won next year.

Han Jeyoon, a researcher at Leading Investment & Securities, stated, "After carrying out a big bath last year, Dio made a complete management overhaul, improved its financial structure, reorganized its sales network, and focused on educational support such as seminars. The company has made significant efforts to normalize operations through this year," adding, "As a result, Dio has continued to grow alongside the market this year, and especially, sales growth is immediately translating into operating leverage."

Dio is proactively securing capacity (CAPA) in China and proceeding with related processes in preparation for China’s Volume Based Procurement (VBP), scheduled for the first half of next year. Han assessed that since VBP is a system in which the central government purchases in bulk and supplies to each hospital, this could be an opportunity for the company, which is actively targeting the Chinese market.

Han estimated Dio’s 2026 results at sales of 211.9 billion won (+30% YoY) and operating profit of 30.9 billion won (+94% YoY). He believes that the company’s efforts in overseas markets after the big bath are now on track, and that profit leverage from increased sales volume will become more pronounced.

He also noted that these estimates exclude China’s VBP, so if Dio succeeds in winning VBP bids, there is potential for further upside in performance, warranting attention.