"HIRONIC Expands Growth Base Through North American Expansion and Product Diversification"

Independent Research Firm Aries' Analysis of HIRONIC

Independent research firm Aries said on Oct. 13 that HIRONIC is expanding its growth base by strengthening the product competitiveness of its flagship aesthetic medical devices and entering the North American market. It did not provide an investment rating or a target price.

Lee Jaemo, a researcher at Aries, said, "Following improved results in the first half of this year, North American sales and expanded sales of new products are expected to serve as additional growth drivers. Our product lineup, which spans various energy sources and treatment areas, broadens customers' options and can reduce revenue dependence on any single product."

HIRONIC is expanding sales of individual products, including V-Ro Lifting, Synerjet Pro, and M-GLOW. V-Ro Lifting is a combination device that integrates high-intensity focused ultrasound (HIFU) and radiofrequency (RF). It also generates recurring consumables revenue through cartridge replacements after the device is sold.

Lee said, "In North America, HIRONIC signed a four-year exclusive distribution agreement with Venus Concept covering the United States and Canada. The plan is to expand device supply and consumables sales by leveraging Venus Concept's local direct-sales organization and network of hospitals and clinics. The scope of the partnership could expand beyond existing products to include future new products."

The company's revenue in the first half of this year was KRW 20.4 billion, a record for a first half. Operating profit came to KRW 2.6 billion, the highest in 11 years. Revenue was equivalent to 63.6% of the full-year total for last year. Consumables revenue rose 33% year over year to KRW 11.2 billion last year and reached KRW 5.8 billion in the first half of this year.

The company also expanded shareholder returns. In the first half of this year, it canceled approximately 3.99 million treasury shares and paid its first-ever quarterly dividend since its founding, totaling approximately KRW 4 billion, or KRW 233 per share. It is also considering additional shareholder return measures.

Lee said, "North American sales are expected to be reflected in results starting in the third quarter, and revenue is expected to grow as demand for flagship products expands and home devices are upgraded. Increased device supply in North America could lead not only to initial device sales but also to recurring consumables revenue after installation."

He added, "Expanded sales of M-GLOW and Synerjet Pro, together with the launch of upgraded home-device models, will help secure additional demand in both the hospital and clinic market and the home-use market."

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