[Click eStock] "J.CIS Medical, Strong Q3 Performance Despite Off-Season... Promising 2022"

[Asia Economy Reporter Jihwan Park] Daishin Securities stated on the 12th that J.CIS Medical recorded solid performance in the third quarter despite the off-season, and expects a good performance trend to continue next year. The current stock price level is also analyzed to be undervalued compared to global peers in the same industry. They maintained a 'Buy' investment rating and a target price of 11,000 KRW.

Researcher Saerom Lee of Daishin Securities said, "Third-quarter sales amounted to 20.6 billion KRW, a 35.7% increase year-on-year, but operating profit decreased by 14.3% to 6.1 billion KRW." Sales by major products were HIFU 3.6 billion KRW (+63.2%), RF 3.9 billion KRW (+120.5%), and consumables 9.6 billion KRW (+10.4%).

Researcher Lee said, "Despite the off-season in the third quarter and shipment delays of North American RF equipment, the company achieved solid results," adding, "High-margin consumables saw simultaneous demand increases from Cynosure and Japan, accounting for 47% of sales." Next year's expected sales are 98.5 billion KRW, and operating profit is expected to increase by 22% and 32% to 30.7 billion KRW, respectively. The main export markets are Japan and North America. Japan is viewed positively as a region contributing significantly to profits, with high growth experience in HIFU equipment through its local subsidiary, and recently meaningful increases in demand for consumables and RF equipment for Japan.

The stock price level is also considered undervalued. Researcher Lee said, "The price-to-earnings ratio (PER) of global aesthetic company Inmode is continuously rising at 45 times, while the company's PER is only 19 times." He emphasized, "Considering the expansion of MoQ for Cynosure in 2022, the favorable earnings structure due to increased consumables proportion leading to operating leverage, and new product momentum, a rebound in corporate value is necessary."

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