Sangsangin Securities projected on July 13 that InBody's performance will improve significantly, driven by the expansion of the global obesity treatment market (GLP-1) and growth in overseas sales. The firm raised its target price from 43,000 won to 75,000 won, an increase of 74.4%, while maintaining a 'buy' rating.
Ha Tae-ki, a researcher at Sangsangin Securities, assessed that the spread of GLP-1-based obesity treatments will serve as a long-term growth driver for InBody. As demand for managing muscle mass and body fat changes during treatment increases, the use of body composition analyzers is expected to expand beyond hospitals and health check-up centers into the fitness and sports sectors.
InBody primarily sells body composition analyzers, along with blood pressure monitors and software, and is heavily export-oriented, with an export ratio of 86.7% as of the first quarter of this year. Last year, the company faced stagnant profitability due to increased selling and administrative expenses from establishing overseas subsidiaries and hiring more staff to expand direct sales. However, analysts believe that the operational leverage effect from growth in sales will begin to materialize this year.
For the second quarter, consolidated revenue is estimated to reach 69.5 billion won, a 23.7% increase from the same period last year, while operating profit is projected to rise by 26.3% to 13.1 billion won. Notably, exports of body composition analyzers, which account for 70.9% of revenue, are expected to increase by 30.0% to 46.1 billion won. Sales of high-priced products in the U.S. and Europe are anticipated to grow by 20-30%, while the Latin American market, including Mexico, is expected to see a 60-70% increase. The consumer segment, which includes home body composition analyzers, is also projected to grow by 60% to 6.3 billion won.
Ha noted that recent purchases of InBody products for clinical trials by major pharmaceutical companies indicate market changes. He also highlighted that the penetration rate in overseas markets, particularly in the U.S., remains low, suggesting significant growth potential. Sales are increasing evenly across the U.S., Europe, Mexico, Asia, China, and Japan.
Profitability improvements are also expected. The burden of increased selling and administrative expenses from transitioning to direct overseas sales is easing due to rising sales, and the expansion of high-priced product sales along with favorable exchange rates is contributing to an increase in operating profit margins.
Ha stated, "We expect sustained annual growth in the mid-to-high teens. Considering its advantages as a stable growth company less affected by economic fluctuations, the current stock price remains significantly undervalued compared to its fundamentals." He added that while there may be a sharp rise in stock prices in the first half of 2026 followed by a short-term correction, the stock is likely to rise further as strong performance growth and improvements are confirmed during the second half earnings season.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.