The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. — Ed.
Dental implant monthly exports hit new record heights in December. Expectations toward exports this year are strengthening thanks both to the elimination of uncertainties in China’s VBP and demand growth in Russia and Turkey. Esthetic products are maintaining a solid export base, but Gangnam-gu is seeing a slowing in exports to Brazil. Toxin shipments out of Chuncheon are on the rise.
Dental implants: Exports upping, China’s VBP risk mitigating; expect higher exports to EMs
December implant exports reached US$71.88mn (+15% y-y, +14% m-m), a new record for monthly exports. Affected by a Covid-19 surge, implant exports to China were held to US$18.88mn (-19% y-y, -35% m-m). But, significant growth was confirmed outside of China, including US$9.21m in Russia (+10% y-y, +98% m-m) and US$7.72m in Turkey (+113% y-y, +299% m-m). With uncertainties over China’s VBP dissipating, the implant industry is set to grow rapidly going forward in both developing European countries and EMs in Southeast Asia, South America and Africa. Currently trading at an average 2023F P/E of around 10x, large domestic implant players are poised to re-rate. Exports to China from Suwon-si, Gyeonggi-do (estimates for Dentium) were solid at US$6.56mn (+8% m-m) in December, and notable rises were seen for Russia, Turkey, and Romania among other countries, with overall monthly exports topping US$20mn for the first time ever. In 2023, we expect exports to set a new annual record, supported by capex investment of W30bn.
December exports of dental imaging equipment totaled US$17.98mn (-22% y-y) in December, with Hwaseong City (estimates for Vatech) showing US$7.13mn (-48% m-m), dragged down by weakened demand in China and a slowing in the previous the US uptrend.
Aesthetics: Gangnam-gu, m-m drop in aesthetic equipment exports to Brazil
Aesthetic products recorded good export flow with December exports of US$78.41mn (-2% y-y, +3% m-m), with Geumcheon-gu (estimates for Jeisys Medical) chalking up the highest monthly exports in its history. Although Gangnam-gu (estimates for Classys) exports to Brazil (US$640,000, -78% m-m) narrowed, total exports to Brazil continued to grow q-q, reaching US$6.02mn (+93% q-q) for 4Q22. Exports of devices to the US from Goyang City (estimates for Lutronic) decreased (US$1.26mn, -16% y-y), but quarterly growth was achieved thanks to strong exports in October and November.
Toxins: See solid export growth in December
December Toxin exports totaled US$32.54mn (+39% y-y, +19% m-m), confirming solid growth. Hwaseong-si, Gyeonggi-do (estimates for Daewoong Pharmaceutical) reached US$7.15mn (+7% m-m) in terms of total exports and US$2.72mn (-0.2% m-m) for the US market. Sending out shipments to China in one shot during the last month of each quarter, Chuncheon-si, Gangwon-do (estimates for Hugel) registered excellent overall monthly performance of US$10.43mn (+97% y-y, +84% m-m) for December, with the Chinese market figure hitting US$5.35mn (+140% y-y).
