Vistos Expands Production Facilities Following Share Buyback, Expects Strong Performance Rebound in Second Half

Vistos, a medical device specialist, is simultaneously pursuing share buybacks to enhance shareholder value and expanding its production facilities, raising expectations for a rebound in performance in the second half of the year. In the first half, some sales were deferred due to the expansion of production facilities, resulting in weak performance. However, with factory expansion now complete, the company is expected to normalize sales and improve profitability from the second half of the year.

Recently, Vistos signed a trust contract for the acquisition of KRW 1 billion worth of treasury shares with KB Securities. Applying the contract reference price of KRW 3,190 per share, the company can purchase approximately 313,480 shares, equivalent to about 6.8% of the total number of issued shares. The contract duration is six months. The actual number of shares acquired and the purchase price may vary according to future share price movements.

Prior to this, Vistos had already completed the acquisition of treasury shares worth KRW 2 billion in full. Through this additional buyback, the company plans to continue its policy of stabilizing the share price and enhancing shareholder value. This move is also meant as a proactive response to the newly strengthened KOSDAQ market capitalization listing maintenance standards introduced in July this year.

The company maintains that the share buyback goes beyond being a simple defensive measure. By undertaking the buyback at a time when production facility expansion is complete and prospects for a recovery in performance are visible, the company’s assessment is that the current share price does not fully reflect the company’s intrinsic value.

From a performance perspective, it is important to note that the weakness in the first half was due to temporary production disruptions. The company explained that the expansion work at its Yongin and Wonju factories affected its results. During the construction period, some production schedules were adjusted, resulting in approximately KRW 3 billion in sales being deferred to the third quarter; additionally, initial costs and depreciation expenses incurred in preparing to operate new facilities put pressure on profitability.

Now that the expansion of production facilities is complete, Vistos expects the deferred sales to be gradually reflected from the second half of the year. The company noted that, starting in the third quarter, the recognition of deferred sales coupled with expanded production capacity may enable both sales and profitability to recover simultaneously.

Vistos is a medical device manufacturer focused on incubators, patient monitors, and breast pumps. Since the majority of its revenue comes from overseas exports, increased production capacity could improve the company’s ability to fulfill orders and drive sales growth. The company is also reviewing new product lineups and business models linked to existing operations as it seeks to secure mid- to long-term growth drivers.

In addition, the expansion of collaboration with CU Medical Systems is another factor raising expectations for mid- to long-term growth. In February, Vistos’ majority shareholder became CU Medical Systems, and the two companies jointly participated in WHX Dubai 2026, marking their first global business partnership since the acquisition. The two firms introduced integrated solutions combining Vistos’ fetal and patient monitoring and diagnostic medical devices with CU Medical’s AEDs and other emergency medical equipment. They also discussed direction for business cooperation with buyers from the Middle East, Europe, and Asia.

Integrating the two companies’ product portfolios could allow for the creation of an all-in-one medical device solution covering emergency care, diagnostics, and monitoring. Given CU Medical’s plan to strengthen its global competitiveness through strategic cooperation with Vistos, attention is now focused on whether joint marketing and portfolio expansion will translate into actual sales growth.

A Vistos official stated, "Production normalization in the second half is expected to lead to real performance improvement," adding, "Along with enhancing shareholder value through share buybacks, we are also strengthening our mid- to long-term growth foundation through expanded production capacity and global collaboration with CU Medical Systems."

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