[Click eStock] "Dentium, Low Interest but Watch for Re-rating Timing"

NH Investment & Securities analyzed on the 5th that although interest in Dentium has decreased, attention should be paid to the rerating timing.

Park Byung-guk, a researcher at NH Investment & Securities, stated in a report on the same day, "Due to macro influences such as China and Russia, the applied net profit has been lowered, and the target stock price was also reduced by 10% to 180,000 KRW," adding, "However, the multiples of overseas peers remain solid."

He said, "The confirmed cost of sales for the second quarter reflected an increase of 1.5 billion KRW compared to the provisional results, and the cost of sales ratio also rose by 1.3 percentage points," and added, "This is due to an increase in inventory valuation losses during the semi-annual audit. The third quarter sales are estimated at 111.5 billion KRW (up 23% year-on-year), and operating profit at 35.2 billion KRW (up 4% year-on-year)."

He continued, "Sales in China are estimated at 58.1 billion KRW, a 20% increase compared to the same period last year," and predicted, "Although prices are discounted by about 20%, the quantity is expected to improve compared to the growth rate in the last quarter."

He explained, "Despite disappointing Chinese consumption, demand for implant consumables remains solid," and added, "Exports to Russia still face logistics issues, resulting in poor export performance in July and August, with recovery expected from September. As interest declines, undervaluation continues."

Furthermore, he said, "Interest has decreased following disappointing Chinese consumption compared to early-year expectations and the VBP surprise," and forecasted, "Rerating will be possible when expectations for the first half of next year's performance, when the VBP effect begins to materialize, are reflected."

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