[Click e-Stock] "Meta Biomed Undervalued Despite Rapid Profit Growth"

Eugene Investment & Securities analyzed on September 8 that Meta Biomed is undervalued relative to its performance.

Park Jongseon, a researcher at Eugene Investment & Securities, stated, "Based on this year's expected results, Meta Biomed's price-to-earnings ratio (PER) is 7.6 times," adding, "This is being traded at a significant discount compared to the average PER of 20.9 times for similar domestic companies."

He continued, "On a consolidated basis, we estimate this year's sales at 110.3 billion won and operating profit at 26.5 billion won, representing increases of 17.2% and 53.7% year-on-year, respectively." He further analyzed, "The dental division is expected to grow by 19.2% year-on-year, driven by market recovery and new product launches."

Additionally, he noted, "The suture division continues to experience supply chain shortages," and added, "As sales from the high-margin suture division increase, profit growth is expected to accelerate."

Park explained, "We expect significant sales growth next year," and said, "To respond to the suture market shortage, a new second production plant will be completed in November this year."

Exports account for 88.9% of the suture division's sales. Park analyzed, "As non-absorbable sutures are being replaced by absorbable sutures, and animal-based sutures (Catgut) are being replaced by synthetic sutures, the biodegradable suture market is growing at an average annual rate of 4%." He added, "Demand is increasing for functional and antimicrobial sutures over general sutures, and Meta Biomed is signing multiple contracts to boost sales of existing functional products."

He introduced, "We are also developing suture products tailored for robotic surgery and special functions," and said, "We are responding to market changes by focusing on functional antimicrobial and mono products, as well as specialty sutures, which are priced at more than twice that of existing products."

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