[Click eStock] "Rimed, Boosted by Overseas Sales, to Run Again from Q3"

Korea Investment & Securities Report
Operating Profit of 9.2 Billion KRW This Year... 116% Increase YoY

[Asia Economy Reporter Minji Lee] Korea Investment & Securities predicted on the 11th that Remed is expected to show performance growth from the third quarter due to the resumption of exports. Although no investment opinion or target price was presented, it was anticipated that the company holds not only visible performance increases but also potential for business expansion.

Remed is the first domestic developer of electronic medicine (therapeutic electronic devices) that treats diseases through medical devices forming magnetic fields. The field of electronic medicine, a sustainable treatment method that reduces side effects and lessens patient cost burdens, is gaining attention.

The main businesses are TMS (brain rehabilitation), NMS (chronic pain), and CSMS (aesthetic), with sales proportions of 9%, 49%, and 32%, respectively. Recently, based on TMS core technology, the company has entered the chronic pain aesthetic field, establishing a growth engine.

In the first quarter, Remed recorded sales of 6.4 billion KRW and operating profit of 2.3 billion KRW, achieving favorable results. The second quarter is expected to see sluggish export performance to the US and Europe due to the impact of COVID-19. However, considering that exports resumed from mid-May, gradual performance improvement is expected from the third quarter.

Seungyoon Jung, a researcher at Korea Investment & Securities, said, “ODM volumes of chronic pain devices for Zimmer and component supply for Allergan’s aesthetic device Cooltone will drive performance in the second half. We are discussing contracts with multiple companies to expand the global distribution network for chronic pain devices, and plan to apply for FDA approval for TMS and NMS devices in the second half.”

Remed recorded sales of 18.5 billion KRW in the second half of last year, more than doubling compared to the previous year due to the full-scale start of exports. Market expectations forecast this year’s sales and operating profit to be 29.1 billion KRW and 9.2 billion KRW, respectively, representing increases of 57% and 116% compared to the same period last year.

Researcher Jung said, “Overseas exports and distribution contracts are only at the initial stage, and there are various fields that can be expanded within electronic medicine. While the PER of companies operating domestic body contouring medical device businesses is 25 times this year, the company’s expected PER is around 22 times.”

This content was produced with the assistance of AI translation services.