Sangsangin Investment & Securities on the 10th said Graphy is expected to see sales growth next year on the back of opening export markets and expanding domestic recognition. It initiated coverage with a "Buy" rating and a target price of 32,000 won. Graphy's closing price in the previous session was 19,130 won.
Ha Tae-gi, an analyst at Sangsangin Investment & Securities, cited Graphy's growth drivers, saying, "It is providing an integrated orthodontic solution using shape-memory materials for the first time in the world," and added, "It can supply the product about 50,000–100,000 won cheaper than the overseas price ($455)."
He added, "The company has published more than 70 papers in prestigious journals in science and technology, is strengthening marketing to open export markets, and is selecting distributors and partners by region."
Graphy supplies clear aligners in Europe to its key partner Medentis Medical in Germany, and in the United States it has obtained U.S. Food and Drug Administration (FDA) approval for equipment and materials and is building a production plant.
This year's sales are forecast at 17.6 billion won, up 9.1% from a year earlier, with an operating loss of 10.0 billion won.
Ha said, "If visible results emerge in exports next year or if a contract is signed with a major distributor, the stock could rebound sharply at a growth inflection point."