[Click eStock] "COVID-19 Vaccine, Beauty Market Normalization"... Lutronic, Target Price 19,000 KRW

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment has presented a target stock price of 19,800 KRW for Lutronic, a beauty medical device company, forecasting an annual operating profit margin of 16.5% through a management strategy prioritizing profitability and external growth.

Lutronic is a specialized medical device company utilizing various energies such as laser, radio frequency (RF), electrical muscle stimulation therapy (EMS), and high-intensity focused ultrasound (HIFU). The company’s new products launched in the second half of last year are expected to generate significant sales this year. Hollywood Spectra, released in the United States, is an upgraded version of Spectra, Lutronic’s best-selling product, targeting the Hollywood laser peel procedure popular in the U.S. Lutronic’s first EMS-based body contouring medical device, AcuFit, was approved and sold in the U.S. last year and is expected to be approved and sold in Europe and domestically this year.

According to Medical Insight, the U.S. region accounts for half of the global beauty medical device market. Lutronic has targeted the U.S. market as a core region since the early stages of its business. Based on sales in the third quarter of last year, Lutronic’s export ratio reached 78.9%. The overseas subsidiary sales ratio has steadily increased from 29.9% in 2018 to 46.4% in the third quarter of 2020. Lee Jung-gi, an analyst at Hana Financial Investment, said, "With the rapid supply of COVID-19 vaccines in developed countries, market normalization is expected to occur faster than anticipated," adding, "We expect to benefit from deferred demand as a result."

Lutronic successfully turned its operating profit positive last year, and especially in the fourth quarter of the same year, it recorded an operating profit margin exceeding 20% even excluding one-time reversals. This year, with product diversification momentum including the launch of new HIFU products and vascular treatment products in the first half, and new body contouring products in the second half, along with market normalization in developed countries due to COVID-19 vaccine supply through overseas distribution networks, profitability improvement and continuous growth are expected.

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