[Click eStock] "Vatech, Strong Surge in Demand for Core Dental Products... Expecting Good Q1 Performance"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment stated on the 24th that demand for dental equipment is beginning to increase following implants for Vatech, and strong performance is expected in the first quarter of this year. Accordingly, it presented a 'Buy' investment rating and a target price of 46,500 KRW.

Jung Mingu, a researcher at Hana Financial Investment, said, "Vatech has maintained a high market share in the domestic and international 3DCT markets, but due to a slowdown in external growth, it has been valued at a discount compared to competitors." However, it is analyzed that Vatech is benefiting from the increase in demand for dental equipment in global sales regions where price competitiveness is important, based on its high market share. It is also explained that the company is building a product portfolio that aligns with recent trends by strengthening its digital dental equipment lineup (OPEN CAD/CAM strategy and internalization of oral scanners).

Vatech is expected to achieve its highest annual performance due to global deferred demand and high growth in key regions this year. Researcher Jung said, "As the completeness of the digital dental lineup increases, discount factors will be resolved, and further valuation upgrades are also considered possible in the future."

In particular, it is analyzed that performance upgrades are expected due to the rapid business recovery in major export regions this year. Vatech's annual performance this year is expected to be sales of 296.1 billion KRW

and operating profit of 48.1 billion KRW, up 21.1% and 47.4% respectively from the previous year.

It is analyzed that Vatech has experienced faster-than-expected business recovery and deferred demand in North America and Europe since the beginning of the year, and that strong performance can be demonstrated from the first quarter due to increased demand for dental equipment driven by high growth in the dental industry in China. He stated, "Vatech's first-quarter performance is expected to increase by 18.1% and 60.9% year-on-year, with sales of 64.4 billion KRW and operating profit of 10.2 billion KRW, respectively."

Researcher Jung emphasized, "This year, Vatech's external growth is expected to be driven by new manufacturing approvals and expansion effects for premium Green series products in the Chinese market, and by an increase in average selling price (ASP) through the launch of premium products (GreenX) in the U.S. market."

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