[Click e-Stock] "DIO to Enter Full-Fledged Turnaround This Year"

On April 16, Hanyang Securities projected that DIO is entering a turning point this year, with both its performance and fundamentals set to change significantly.

The company’s performance last year showed a clear recovery trend. In 2025, DIO achieved revenue of 164.08 billion won (up 37.1% year-on-year) and operating profit of 10.1 billion won, turning profitable and posting its highest-ever annual revenue. This is attributed to large-scale expense recognition and asset restructuring in 2024, which established a performance bottom, followed by the full-fledged impact of country-specific strategies and improvements to its business fundamentals. Notably, the company posted its highest-ever quarterly revenue in the fourth quarter, setting a new annual record since its founding.

Researcher Lee Junseok explained, “2025 was a year when financial normalization, core business recovery, and the expansion of the global customer base were all confirmed, and it laid the foundation for a performance turnaround in 2026.”

The company’s financial structure also improved noticeably. Accounts receivable, which had grown during previous aggressive overseas expansion, declined sharply from 130.8 billion won in 2023 to 69.2 billion won, and both accounts receivable and inventory turnover days showed improvement. These changes are regarded as key factors in reducing potential financial burdens during future top-line growth. The number of global customers increased by 22% year-on-year, and global training was conducted 723 times with a total of 20,493 participants. New product launches such as UNICON Implant and ECO PLANNING, along with the establishment of an advanced logistics center and expanded production facilities, were carried out in parallel.

The main driver of growth is the expansion of overseas sales. The share of overseas sales for DIO rose from 69.5% in 2022 to 83.6% (137.1 billion won) in 2025. By region, major markets such as China (42.3 billion won), India (9 billion won), and Portugal (10.3 billion won) all showed solid growth. In particular, sales in China surged by 82.3% year-on-year, offsetting concerns about price drops due to the implementation of VBP by increasing sales volume.

Lee Junseok analyzed, “Sales in China increased by 82.3% year-on-year, offsetting concerns about price declines from the implementation of VBP by expanding sales volume.”

The company’s China strategy is also becoming more concrete. DIO plans to utilize the Sichuan production facility as a key base for responding to VBP 2.0 and targeting mid- to low-priced demand, improving both cost competitiveness and profitability through local production. In addition, strengthening large DSO sales and expanding sales coverage in tier 3 and 4 cities are expected to accelerate growth.

Outside of China, the expansion of India’s medical infrastructure and growth in advanced markets such as Portugal, backed by European MDR certification, are expected to support the company’s performance floor. DIO also plans to expand its export destinations to 100 countries, strengthening its overseas market strategy through product mix enhancement and distribution structure optimization.

Lee Junseok stated, “In 2026, the combination of China localization strategy and contributions from new bases will mark a phase of both top-line growth and qualitative improvement.”

In 2026, the company is expected to enter a full-fledged performance leverage phase. Annual revenue is projected to reach 206.16 billion won (up 25.6% year-on-year), and operating profit is expected to reach 30.52 billion won (up 202.0% year-on-year), representing significant growth. While last year focused on financial normalization and business fundamentals improvement after a big bath, this year is analyzed as the stage where operational leverage is materializing in earnest.

DIO plans to expand its export destinations to 100 countries and pursue a sales strategy focused on major dealers and core markets by region. The company’s strength lies in its broad portfolio of premium, value, and economic product lines, enabling it to address mid- to low-priced demand after the implementation of VBP in China, as well as to respond widely to emerging markets such as India and the Middle East, and advanced markets in Europe and North America. In addition, the global launch of UNICON, new product releases for Europe and North America, expansion of ECO PLANNING & CAD, and DIO Mall are expected to drive its transformation from a simple implant company to a digital dentistry platform business.

Lee Junseok added, “2026, when revenue surpasses 200 billion won and cost efficiency improves, is expected to be a period marked by top-line growth, profitability improvement, and a valuation re-rating occurring simultaneously.”

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