[IPO Microscope] Meju Projects Turnaround From Loss to 34.4 Billion Won Profit in 4 Years...Can It Convince the Market?

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Medical device company Meju is attempting to list on KOSDAQ via the technology exception track, based on rosy performance projections that its revenue will grow more than eightfold in four years. The company is effectively promising annual high growth of over 70%, and attention is focusing on whether the market will find this credible.

According to the Financial Supervisory Service's electronic disclosure system on the 11th, Meju submitted a securities registration statement to the Financial Services Commission on January 20 and began the public offering process. The desired offering price is between 16,700 and 21,600 won per share, and based on the upper end of the range, the expected market capitalization after listing is around 209 billion won.

Meju is a medical device company that provides mobile remote patient monitoring solutions. As of the end of the third quarter of last year, it recorded revenue of 5.3 billion won and an operating loss of 2.2 billion won. By revenue share, patient monitors account for 45.3%, Holter electrocardiographs 7.9%, and other products and services 28.9%. In July last year, Meju received A and BBB ratings in a technology evaluation and is preparing for a KOSDAQ listing under the technology exception program.

While still in the red, Meju calculated its desired offering price based on projected future net income. According to the securities registration statement, Meju estimates that in 2029 it will post revenue of 62.7 billion won, operating profit of 42.0 billion won, and net income of 34.4 billion won.

This assumes that revenue will increase more than eightfold compared with 2025 and that the company will generate a very high profit margin. The Korea Health Industry Development Institute projects that the domestic remote patient monitoring market will grow at a compound annual growth rate (CAGR) of 12.7% through 2030, meaning Meju’s projections far exceed the industry outlook.

Meju stated that it derived these performance projections by taking into account the business targets of its partner company, Dong-A ST. Back in 2022, Meju signed a domestic distribution rights agreement with Dong-A ST. Ninety-eight percent of Meju’s products are sold to tertiary hospitals and clinics through Dong-A ST. This is why Meju relied on Dong-A ST’s business targets.

Meju and Dong-A ST projected that revenue from the monitoring segment of the business will increase sharply. They forecast that monitoring revenue, which was 5.5 billion won last year, will rise to 60.1 billion won in 2029. This implies an increase of 990% in just four years.

The basis for the projected surge in revenue is the assumption that the yet-to-be-released new product “M350” will generate strong sales. Meju expects that within four years of its launch this year, the product will generate hundreds of billions of won in revenue and that its domestic market share will increase more than fivefold.

While presenting these rosy projections, Meju also disclosed that it has historically posted high growth rates. According to the securities registration statement, Meju’s revenue grew at a compound annual rate of 66.1% from 2022 through the third quarter of 2025. This is a growth trajectory similar to the roughly 70% compound annual growth assumed through 2029.

However, excluding the period up to the third quarter of last year, the compound annual growth rate for 2022-2024 is 33.6%. A sudden increase in revenue in the third quarter of last year pushed up the overall average.

It is noteworthy that at this time accounts receivable, which are essentially “on-credit” sales, surged. The ratio of accounts receivable to revenue, which had remained below 50% through 2024, jumped to 84% in the third quarter of last year. It is analyzed that Dong-A ST, the exclusive distributor, purchased a large volume of products on credit ahead of Meju’s listing. Dong-A ST holds a 4.5% stake in Meju.

Regarding this, Meju stated, “As of the end of the third quarter of last year, in line with Dong-A ST’s internal cash management plan, there was an adjustment extending the existing 60-day payment term by three months, but all of the related accounts receivable were collected in full by the end of October last year,” adding, “This was a temporary measure aimed at increasing market share by strengthening our partnership with Dong-A ST, which has a large distribution network.”

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