"I Was Only Watching the Companies Behind Mounjaro and Wegovy"... Another Company Is Raking In the Cash [Weekend Money]

The Era of Widespread Obesity Treatment
InBody Builds on Exports of Body Composition Analyzers
Exports to the U.S. and Europe Are Growing Rapidly
"Despite Sharp Gains, Shares Could Rise Again"

As weight-loss drugs and various recreational activities, including running, become increasingly popular, analysts are optimistic about InBody's growth prospects. Although its share price has already risen sharply this year, analysts say it could climb again over the long term.

Meanwhile, analysts are optimistic about InBody's growth prospects. File photo. Pixabay

InBody shares rose from 32,650 won at the start of the year to 73,500 won on August 7. They later pulled back, closing at 53,200 won on October 7, but remain well above their level at the start of the year.

SangSangin Securities expects InBody to maintain strong growth in both revenue and operating profit in the third quarter. It estimates consolidated revenue of 73.1 billion won and operating profit of 14.5 billion won for the quarter. Exports are driving growth, accounting for 87.3% of revenue in the first half of this year. Operating profit is expected to edge down from the second quarter due to the lower won-dollar exchange rate and refunds of U.S. tariffs.

Ha Taegi, an analyst at SangSangin Securities, noted, "In the era of obesity treatment, body composition analyzers are expected to become essential infrastructure equipment." Exports in the body composition analyzer segment, which accounted for 70.8% of InBody's revenue in the first half, are estimated to have grown 27% in the third quarter. Exports to the United States and Europe, which together account for more than half of total revenue, are growing rapidly. The company is also seeing growth in Mexico and Asian markets.

Demand for home-use products is also supporting growth. "Sales of obesity drugs are increasing, and demand for monitoring related muscle mass and body fat is also on the rise," Ha said. "InBody is well positioned in infrastructure equipment for these areas, and revenue from professional and personal-use body composition analyzers is expected to grow strongly. Within this trend, revenue growth is expected to accelerate again in the fourth quarter, a seasonally busy period."

InBody logo

Although the share price has fallen since hitting a peak in August, analysts say there is still ample momentum for further gains. They note that the GLP-1 obesity drug market is taking off, expanding the growth potential of the body composition analyzer market. "It is not easy to separately identify and quantify the related demand at this point, but demand for body composition monitoring is also believed to be growing among global pharmaceutical companies that develop and sell obesity drugs," Ha said.

He also said that while InBody is an export-driven company, the impact of a weaker won against the U.S. dollar is likely to be limited. "The decline in the exchange rate in the third quarter is a factor that could increase the cost ratio, but the increase in sales volume should offset it, so the actual impact is expected to be limited," Ha said. "InBody is a strong market leader with global competitiveness, so it may also be able to respond by raising prices, depending on the circumstances."

Ha added, "InBody's shares remain attractive in terms of valuation," and raised his target price to 85,000 won from 75,000 won.

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