DAISHIN SECURITIES analyzed that while there are expense burdens on Vatech as of 1st, the ongoing trend of expanding sales towards North America is positive. It adjusted its target stock price upward from 32,000 won to 35,000 won, maintaining its investment opinion of 'buy.' The closing price of Vatech on the previous trading day was 21,400 won.
In the second quarter of this year, Vatech's sales amounted to 110.6 billion won, an increase of 8% compared to the previous year, while operating profit stood at 16.9 billion won. Han Song-hyup, a researcher at DAISHIN SECURITIES, said, "North American sales continue to perform well, 3D products are on a growth trajectory, and there is also an impact from rising costs due to inflation."
DAISHIN SECURITIES noted that Vatech is experiencing an increase in sales towards North America and is expanding its size through the launch of new products and diversification of products certified in Europe.
A researcher said, "The full-scale sales of the premium new product 'Green X 21' in the second half and the expansion of the North American dealer network are expected to become evident. If the demand recovery in Europe and emerging countries in Asia is added, the sales growth will likely expand."
Currently, Vatech's price-to-earnings ratio (PER) is about 4.6 times, indicating an undervaluation range. A researcher said, "Tariff and cost burdens are still factors of concern; however, the company's sales structure is diverse by region and product, so the impact is expected to be limited." He added, "There is a high possibility of re-rating when performance becomes evident."