[Click eStock] "Dentium, Limited Russia Risk... Undervalued Zone"

[Asia Economy Reporter Hwang Yoon-joo] Shinhan Financial Investment maintained a 'Buy' rating and a target price of 90,000 KRW for Dentium on the 3rd, stating that despite concerns over risks stemming from Russia, the stock remains undervalued.

Won Jae-hee, a researcher at Shinhan Financial Investment, stated, "Implants are classified as medical devices rather than strategic materials, so they are not expected to be included in export-restricted items."

Researcher Won analyzed, "Russia is a market where indirect sales through a 100% dealer network and transactions in US dollars occur due to political reasons," adding, "Therefore, the possibility of operational risks arising from financial sanctions and the depreciation of the ruble is expected to be limited."

Although the first quarter is considered a seasonal low due to limited business days caused by public holidays in China, Researcher Won evaluated that solid performance will continue this year.

He estimated, "On a consolidated basis for the first quarter, sales and operating profit are expected to be 73.6 billion KRW (+36.9%) and 16.2 billion KRW (+52.4%, OPM 22.0%), respectively," and predicted, "As the number of newly opened dental clinics in China's first-tier cities is rapidly increasing, structural growth will continue based on a package sales strategy (Value-segment implants + equipment)."

He added, "Furthermore, Russia is still an early market with a low implant placement rate, so it is judged that the market penetration of domestic products is progressing rapidly."

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