1. What Happened at WONTECH in H1 2025?

WONTECH achieved KRW 39.8 billion in revenue (+3% YoY) and KRW 17.2 billion in operating profit (+12%) in H1 2025, exceeding market forecasts. However, net profit came in lower than expected at KRW 9.2 billion (-28%).

2. Drivers of Growth and Potential Pitfalls

The increase in revenue and operating profit can be attributed to retaliatory equipment purchase promotions and overseas marketing investments. However, the sustainability of these strategies remains questionable. A thorough analysis of the reasons behind the decline in net profit is necessary.

3. Positive Factors and Growth Potential

  • ▶ High growth of the global aesthetic medical device market (projected annual growth of 10.32%)
  • ▶ Solid business foundation and technological competitiveness
  • ▶ Excellent financial health (low debt ratio, high current ratio)

4. Key Investment Risks to Consider

  • ▶ Potential slowdown in revenue growth
  • ▶ Business concentration in the skin beauty segment (75.3%)
  • ▶ Potential stock dilution due to convertible bond issuance
  • ▶ Vulnerability to exchange rate fluctuations

5. Action Plan for Investors

Short-term investors can capitalize on the positive momentum driven by strong earnings, but should carefully consider the reasons for the decline in net profit and the potential risks. Long-term investors should focus on WONTECH’s growth potential while monitoring its business diversification and new business entry strategies, and continuously observe exchange rate fluctuations and convertible bond conversion trends.