The author is an analyst for NH Investment & Securities. He can be reached at pk.park@nhqv.com -- Ed.
HIFU equipment exports from Gangnam-gu, Seoul to Brazil rebounded in February. Gangnam-gu’s aesthetic consumables and RF equipment exports continue to level up. Aesthetic equipment exports from Yuseong-gu remain on an uptrend, led by Thailand. Dental implant exports from Suwon City continue to boom, despite the sluggish Chinese economy.
Aesthetics: Focus on Brazil and Thailand for aesthetic devices and the US for toxins
In February, HIFU beauty equipment exports from Gangnam-gu (Classys) to Thailand and Russia fell 10% m-m from the high January level, but exports to Brazil rebounded 95% m-m after a temporary sharp decline. Meanwhile, RF equipment was included in the existing consumables export code, and exports of consumables and Volumer equipment upped by 7% m-m, reaching the second-highest level on record. Exports from Yuseong-gu, Daejeon (Wontech) again exceeded US$5mn (+22% m-m), amid solid demand growth from Thailand in 1Q24. Geumcheon-gu (Jeissys Medical) continued to show disappointing device export trends compared to consumables.
In February, exports from Chuncheon City (Hugel) were solid, mainly to Thailand and Brazil. Hugel received FDA approval for Retivo in March, and is preparing to enter the US market. The 2023 North American beauty toxin market was sized at W3tn (~2028E CAGR of 10%), with five companies (excluding Hugel) operating in the market, and Botox holding an 82% market share. Hugel plans to announce its US entry strategy and target market share in the near future. Hwaseong City (Daewoong Pharma, etc) exports to the US were solid in February (US$5.46mn), while Cheongju City (Medytox, etc) exports were disappointing (-65% y-y).
Dental implants: China numbers remain solid
In February, Suwon City (Dentium, etc) booked solid exports to China (+54% y-y, +12% m-m). Total dental implant exports over Mar 1~10 already exceeded half of February's shipments, confirming the steady growth of domestic implant companies in China regardless of China’s economic woes. Straumann expects sales in China to grow by 15~20% over the next 18~24 months.