[Click eStock] "DIO Secures Implant Solution... Profit Expected to Increase 56% This Year"

Yuanta Securities Report

[Asia Economy Reporter Minji Lee] Yuanta Securities maintained a buy rating and a target price of 60,000 KRW for Dio on the 15th, based on the expectation of sales expansion through securing implant solutions.

In the first quarter, Dio recorded sales of 34 billion KRW and operating profit of 10.3 billion KRW, growing 13% and 46% respectively compared to the same period last year. By region, domestic sales reached 10.9 billion KRW, a 65% increase year-on-year, while overseas, China led the expansion with sales of 8.5 billion KRW, up 129% during the same period.

In the US, quarterly sales also rose back to the 5 billion KRW level, showing strong sales momentum both domestically and internationally from the first quarter. Domestically, sales have increased significantly due to the high volume of edentulous solutions, which are the first of their kind introduced in the industry.

Dio is expanding sales by selling procedure systems through securing digital implant solutions. As the digital solutions prove their competitiveness both domestically and internationally, supply contracts with large hospitals are increasing, and the business scope is gradually diversifying. Ju-won An, a researcher at Yuanta Securities, stated, “Once the system supply is established, highly precise guided procedures tailored to the patient’s oral condition are performed, which inevitably increases the dependency of both doctors and patients on the solutions provided by the company,” adding, “Compared to selling implants alone, exclusive and long-term supply becomes possible, enabling steady sales growth.”

This year, sales and operating profit are estimated to reach 156.2 billion KRW and 47.2 billion KRW, representing growth of 30% and 56% respectively compared to the previous year. Rapid growth is expected mainly in domestic, US, and Chinese markets, with operating profit margins projected to rise to the 30% range as sales of highly profitable solutions continue to increase. Researcher Ju-won An explained, “Since it is expected to clearly demonstrate mid- to long-term growth potential, stock price appreciation is also anticipated.”

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