Daishin Securities analyzed on the 11th that China's joint venture (JV) momentum will be visible for Ray.
Investment opinion 'buy' and target price remained at 45,000 won.
Ray's third-quarter sales and operating profit rose 77.7% and 189.6%, respectively, to KRW 25.2 billion and KRW 4.5 billion, compared to the same period last year.
"Fixed costs have increased due to the expansion of R&D costs and the hiring of manpower for full-fledged entry into China," Daishin Securities said. "The cost of subsidiary Rident (distribution of dental equipment), which was acquired in May, was also reflected.".
Sales in China reached 10.3 billion won in the third quarter, up 80 percent from a year earlier. In particular, high growth is expected due to spending in the Chinese market.
"It is also positive that we will be able to recognize sales of around 40 billion won a year through the acquisition of a local dealer network," Daishin Securities said.
"As Ray China's mid- to long-term goal is to grow into a comprehensive rental company, we are considering expanding business diversification such as 3D oral scanners and acquiring new companies.".
Next year's sales and operating profit will be 122.4 billion won and 25 billion won, up 29.8 percent and 58.0 percent, respectively, from a year earlier, Daishin Securities forecast.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
