[Click eStock] "Bodytechmed, Smooth Progress in US and China Businesses... Valuation Attractive Due to Stock Price Decline"

NH Investment & Securities analyzed on the 24th that Bodytech Med's business targeting the US and China is progressing smoothly, and the recent stock price decline has highlighted its valuation attractiveness. No investment opinion or target price was provided.

NH Investment & Securities analyzed that Bodytech Med's stock price volatility has increased recently due to the possibility of changing its entry method into the animal diagnostic system market.

Ji-hyun Hwang, a researcher at NH Investment & Securities, said, "The recent stock price decline is attributed to the emergence of the possibility of entering the animal diagnostic market by utilizing its own sales network instead of OEM supply to US companies." He added, "However, the stock price rebounded yesterday as it is known that the company is returning to the previous method and contract negotiations are in the final stages."

He explained, "US companies need to narrow the gap with market pioneers, and since Bodytech Med requires the brand power of its contracting partner, we believe the possibility of both parties abandoning the contract is low." He further stated, "We expect that the animal diagnostic system can be supplied by 2025 according to the existing timeline."

He also explained that the business targeting China is progressing smoothly. He emphasized, "The chronic disease diagnostic kit business for China is also progressing smoothly," adding, "We are waiting for approval of one of the two international certifications remaining, and if certification is obtained within this year, initial supply is expected to begin."

In particular, he analyzed that the recent stock price decline has highlighted valuation attractiveness. NH Investment & Securities forecasted that Bodytech Med's sales and operating profit for the third quarter of this year will increase by 7.9% and 6.0% year-on-year to 37.6 billion KRW and 9.3 billion KRW, respectively.

He said, "The mid- to long-term growth momentum is valid, and the company is demonstrating high operating leverage from its core business alone." He added, "Due to the recent stock price decline, the valuation has dropped to a price-to-earnings ratio (PER) of 12.3 times, which is undervalued compared to the global on-site diagnostic companies' average of 22.8 times." He continued, "If the entry into the animal diagnostic market is fully launched, valuation rerating is possible."

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