[Click eStock] "Vatech, Continued Demand for Dental Diagnostic Equipment"

Shinhan Investment Corp. Report

[Asia Economy Reporter Kwangho Lee] Shinhan Investment Corp. analyzed on the 14th that Vatech is expected to continue solid performance growth due to sustained demand for mid-to-low priced dental diagnostic equipment. The investment opinion 'Buy' and the target price of 46,200 KRW were maintained.

Jung Mingu, Senior Researcher at Shinhan Investment Corp., explained, "In 2023, performance growth is expected due to the effect of new product launches in North America and Europe," adding, "Since the release of the high-end lines 'GreenX' and 'A9' in the first half of 2022, the cumulative sales volume has been continuously increasing."

He continued, "Major dental exhibitions, which are important for increasing new product sales, will fully resume from 2023," emphasizing, "Additional new products following GreenX and A9 are also scheduled to be launched accordingly."

He further stated, "There is a need to reorganize the sales network in China, and according to the VBP policy within the Chinese dental industry, demand for dental diagnostic equipment in public hospitals is expected to increase sharply," but added, "However, price competition is also inevitable."

He also said, "A new CBCT product, including a dental scanner, is scheduled to be launched in the second half of 2023," and expressed expectations for performance growth, noting, "The expected PER for 2023 is 6.5 times, and considering growth in new regions and expansion of digital dental products, the stock is undervalued."

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