[Click eStock] JC's Medical, New Product Launch Effects Expected from Q3

[Asia Economy Reporter Lee Seon-ae] Yuanta Securities announced on the 1st that it maintains a Buy rating and a target price of 8,540 KRW for JC's Medical. This is based on the expectation that the effect of the new product launch can be anticipated from the third quarter.

The second-quarter performance showed sales of 30.7 billion KRW and operating profit of 8.9 billion KRW, representing growth of 59.9% and 52.8% respectively compared to the previous year. Despite the pending demand for new products, growth exceeding 50% continues due to the expansion of RF (radio frequency) exports. Researcher Kwon Myung-jun of Yuanta Securities stated, "In June, the Linear Z product, an ultrasound (HIFU) device, obtained product approval and began sales," adding, "It is expected to be fully reflected in the performance from the third quarter."

Most overseas HIFU devices perform ultrasound treatment in the form of dots. When changing depth, it is necessary to replace the consumable cartridge. For patients requiring treatment over a large area and various depths, increased cartridge replacement time and frequency lead to longer procedure times. JC's Medical's new product, the Linear Z, enables treatment in a linear form. It also minimizes cartridge replacement and allows ultrasound treatment at various depths. In other words, it reduces the operator's time. In the first half of the year, consumable sales amounted to 23.4 billion KRW, accounting for 41.7% of total sales, maintaining over 40%.

Researcher Kwon emphasized, "Sales growth due to the new product launch and the expansion of the consumables ratio are expected to drive simultaneous growth in sales and operating profit."

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