[Click eStock] "Osang Healthcare, an Exemplary Case of Turnaround... Stock Remains Attractive"

by Jang Hyowon

Published 04 Sep.2025 10:03(KST)

[Click eStock] "Osang Healthcare, an Exemplary Case of Turnaround... Stock Remains Attractive"

On September 4, Shinhan Investment & Securities analyzed Osang Healthcare as an exemplary case of a turnaround.

Byunghwa Lee, a researcher at Shinhan Investment & Securities, stated, "We have confirmed the sustainability and scalability of performance improvement in the first half of this year. With the U.S. Food and Drug Administration (FDA) approval for the combo kit in January, the company has secured earnings stability, and it is preparing to enter the continuous glucose monitoring (CGM) market through a strategic investment with Allez Health." He added that the company’s strategy for diversifying into overseas markets supports the possibility of a stock price revaluation.

Researcher Lee noted, "On a consolidated basis, sales in the first half increased by 82.3% year-on-year to 7.41 billion won, and operating profit turned positive at 1.05 billion won. The exclusive supply contract for the combo kit with a global medical device company contributed to these results, and the stable performance is expected to continue under multi-year contract terms, depending on the trends of COVID-19 and influenza outbreaks." He also emphasized, "The blood glucose monitoring (biochemical diagnostics) segment has continued to generate steady sales even after COVID-19."

In the field of continuous glucose monitoring devices, product launch in the U.S. is scheduled for the third quarter of 2027, with substantial sales expected to begin in 2028. For personal blood glucose meters, the company is establishing production bases and signing contracts in several countries in the Middle East and North Africa, and if localization succeeds, new sales could be generated in each country.

Researcher Lee stated, "Stable sales centered on the combo kit are expected to continue for the next two to three years, which will reduce performance volatility. Contracts with major clients are also highly likely to be sustained going forward."

The stock price has declined by 34.6% from its peak this year, coinciding with the seasonal off-peak period for the combo kit. Currently, the stock is trading at less than 10 times the projected 2025 price-to-operating-profit ratio (POR). Considering the upcoming seasonal peak in the short term and the potential for medium- to long-term entry into the CGM market, the stock remains attractive.