South Korea’s medical equipment manufacturers that are listed on the secondary Kosdaq index delivered stellar performance in the second quarter.

According to the Financial Supervisory Service on Tuesday, dental radiography equipment maker Value Added Technology Co., which is commonly known as Vatech, posted a record operating profit of 15.5 billion won ($14 million) on sales of 64.5 billion won on a consolidated basis in the second quarter ended June this year. Its April-June period operating profit far exceeded the market consensus of 10.5 billion won and gained 13 percent against the same period a year ago. The company delivered solid business outcome after it successfully cut down expenses by merging production platforms and developing core parts on its own.

Dio Corp. that manufactures dental implants recorded operating profit of 8.3 billion won, 88 percent jump on year, in the second quarter propelled by robust sales of its digital implant surgery navigation system DIOnavi and improved profitability.

Blood glucose meter maker i-SENS Inc. thanks to the strong sales performance by its Chinese subsidiary and upgraded production output also posted record-high operating profit and sales in the second quarter.

The medical equipment makers’ June-quarter business performance beat upbeat outlook data that was compiled by FnGuide, Seoul-based market analysis provider, late July. Based on the projection by three securities firm, six Kosdaq-listed medical equipment suppliers were expected to post second-quarter operating profits surging by an average 44.5 percent compared to the same period last year. Three out of six medical equipment manufacturers registered business outcomes exceeding the market consensus.

The rest three that are yet to release second-quarter data are projected to have done well in the past quarter. Osstem Implant Co. would have posted 11.0 billion won, up 51 percent on year, in operating profit. And the operating profits for both medical imaging equipment maker Viewworks Co. and body composition analyzer maker InBody Co. are estimated to have gained by 40 percent compared to a year ago period.

Although the (six) equipment companies specialize in different sectors, their sales all have been driven by strong performance in the overseas market, said Kim Ho-jong, an analyst at NH Investment & Securities Co. The medical implant market is growing rapidly at developing markets such as China and the cost advantage of the x-ray equipments made by Korean firms is pushing up the demand for them in advanced markets, added Kim.

By Lee Yong-gun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]