[Click e-Stock] "Osteonic Expected to Post Record-High Earnings"

On January 9, SK Securities projected that Osteonic, an orthopedic implant company, would achieve record-high sales and operating profit for the previous year. The investment opinion was set to "Buy," with a target price of 10,300 won.

Heo Sunjae, a researcher at SK Securities, analyzed, "Osteonic has continued its steady earnings growth, driven by expanding overseas exports of its major product lines such as sports medicine, CMF, and trauma." He forecasted that in the fourth quarter alone, the company would achieve sales of 13.1 billion won and operating profit of 2.9 billion won. For the full year, he estimated sales of 45.5 billion won (up 32.8% year-on-year), operating profit of 9.4 billion won (up 36.4% year-on-year), and an operating profit margin (OPM) of 20.7%.

Heo further stated, "For the sports medicine product line, sales to Zimmer Biomet in the United States and other major countries are increasing, and we expect high growth to 23.1 billion won this year." He added, "Additionally, the trauma product line is preparing to enter the U.S. market through a global ODM supply contract with a leading global orthopedic medical device company. Since the trauma product line accounts for about 35% of the company's sales, it is expected to contribute significantly to external growth through U.S. exports in the future."

Based on this analysis, he estimated Osteonic's sales for this year at 60.1 billion won (up 32.2% year-on-year), operating profit at 14 billion won (up 48.4% year-on-year), and an OPM of 23.2%. He noted that the current share price is at a price-to-earnings ratio (P/E) of around 10 times based on this year's expected results, highlighting its valuation appeal.

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