The author is an analyst of NH Investment & Securities. He can be reached at — Ed.

Dental implant exports climbed 6% y-y in January, showing disappointing results towards China but reconfirming a growth trajectory in early-February. We draw attention to the particularly robust growth trend being witnessed in EMs. Aesthetics device exports are also on a solid track overall, despite somewhat disappointing equipment exports to Brazil from Gangnam-gu. Toxin exports came in solid, helped by continued export growth out of Hwaseong-si driven by solid non-US demand.

Dental implants: Growth focusing on EMs

In January, dental implant exports totaled US$42.45mn (+6% y-y, -41% m-m). It is noteworthy that January dental implant exports grew 6% y-y from the 2022 low point seen in Jan 2022, as m-m decline typically reaches nearly 40% in January. For largest export destination China, the January figure (US$11.91mn, -37% y-y) arrived somewhat disappointing. However, exports to China over Feb 1~10 likely reached US$9.43mn on a return to the past growth trajectory. We also draw attention to rapid export growth to EMs other than China and Russia such as Turkey, Vietnam, and India (export share climbing from 44% in 1Q21 to 52% in 4Q22).

Exports of dental imaging equipment in January came to US$19.53mn (-10%  y-y), with Hwaseong-si (estimates for Vatech) reporting exports of US$15.37mn (-16% y-y). Exports to the US, which were sluggish in December, recovered.

Aesthetics: Aesthetics equipment exports to Brazil from Gangnam-gu remain unimpressive

Aesthetics products saw solid January exports of US$60mn (+5% y-y, -24%  m-m). Exports to Brazil from Gangnam-gu (estimates for Classys) topped US$960,000 (+50% y-y), but compared to the 4Q22 level (monthly exports of US$2~3mn), the result was disappointing. For Classys, we will need to monitor sales volumes in Brazil (Ultraformer MPT) and at home (Volnewmer) to judge if it can achieve its annual 2023 sales growth target of 20%. We note that major overseas market entry is expected in 2024 (Brazil, Volnewmer) and 2026 (US/China, Volnewmer/Shurink). Exports from Goyang-si (estimates for Lutronic) arrived solid at US$11.22mn (+7% y-y).

Toxins: Despite some issues, fundamentals intact

In January, toxin exports amounted to US$24.6mn (+11% y-y, -24% m-m), confirming a healthy growth trend. Hwaseong-si (estimates for Daewoong Pharmaceutical) logged exports of US$11.17mn (+25% y-y), seeing monthly exports of over US$10mn for the first time since Jul 2022. In addition to the US, strong exports were attributable to Brazil (US$2.73mn, +275% y-y). Based on Korea Customs Service export data, 4Q22 exports divided as: US 37%, Brazil 17%, Canada 11%, Thailand 6%, and others. Chuncheon-si (estimates for Hugel) recorded exports of US$7.48mn (+38% y-y), with no shipments headed towards China in January. Cheongju-si (estimates for Medytox) reported exports of US$1.59mn (+38% y-y), with major export destination South America showing m-m decline.

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