[단독] Health Care Hot Poong… Implants for sale

D.O., an implant manufacturing and solution company with a market capitalization of 470 billion won, came out for sale. As the demand for digital healthcare is increasing due to Corona 19 and more than half of its sales come from overseas, it is analyzed that it will receive love calls from domestic and foreign financial investors (FI) and strategic investors (SI). There is also a prediction that the ransom price will reach 1 trillion won if foreign investors who highly value the growth potential of the implant industry show willingness to take over.

According to the investment banking (IB) industry on the 23rd, D.O. Holdings, the holding company of D.O., selected a foreign host company last week and promoted the sale. The target of the sale is about 30% of the shares, including 21.59% of Dio Holdings, the holding company of Dio, and 4 people including CEO Kim Jin-baek. On a consolidated basis last year, DI recorded an operating margin of 27%, with sales of 1271 billion,652 million won and operating profit of 3,466.7 billion won.

Dio’s ransom value, estimated by the domestic industry, is around 500 billion to 7700 billion won. Considering that D.O’s consolidated operating income (EBTDA) was 43.6 billion won last year, and’Osstem Implant’s’ PER of 10, which is the number one implant industry in Korea, is 436 billion won. If you add the management right premium to this, it could be 470 billion to 500 billion won. The price calculated based on D.O’s market cap of 4742 billion won at 2 pm on the 23rd is similar.

There is also an analysis that the ransom price could exceed 700 billion won by applying the value calculation method of’Medit’, a dentistry solution company acquired by Unison Capital, a domestic private equity fund at the end of last year. Medit’s ransom was calculated at 600 billion won, which is 20 times the operating profit at the time. Last year, D.O’s operating profit was 34.8 billion won, and the corporate value plus the premium for management rights could reach 770 billion won.

However, there are also observations that the price may approach 1 trillion won, considering that the industry usually sees high growth potential for implant companies in the global market. An IB industry official said, “The global implant company’Strauman’ is recognized for its share price return (PER) of more than 200. Compared to that, domestic companies such as Osstem Implant and Dentium have a PER of 10-20. “The situation is undervalued.” It is predicted that depending on the willingness of foreign FIs or SIs to take over, the ransom may increase significantly.

D.O. was launched in 1988 as a Busan-based’Dongseo Machinery’ and then entered the implant market in 2002. By developing digital implant solutions, more than 70% of sales are being raised in overseas markets such as the US and China. The representative service is’Dionavi’. DIONAVI is a solution that allows you to quickly and accurately determine the location, angle, and depth of implantation based on the treatment data of existing patients using artificial intelligence.

The solutions provided by D.O. are in great demand, especially in the United States. From 2019, it is analyzed that Dioravi’s diversified sales networks such as Whitecap Holdings, dental laboratories, and large dental groups were effective.

In fact, sales in the US, which remained at an annual average of 4 billion won, grew rapidly to 18.1 billion won last year and 21.9 billion won (estimated) this year.

Growth in the Chinese market is also steep. This year’s sales in China are expected to reach 33.3 billion won, a 34% increase from the previous year. It is explained that it is the result of reflecting the growth of the entire market and the faster digitization speed, even though performance in the first half of the year was slowed by Corona 19.

In this regard, the D.O. side acknowledged the promotion of the sale of the company, saying, “We have reviewed the sale of the holdings, but no matters have been confirmed so far,” in response to the inquiry and disclosure on the 24th.

[강두순 기자 / 강인선 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]