[Edaily Reporter NA EUN-KYUNG ] #Analysts in the securities industry predict that Graphy Inc. will accelerate its earnings improvement in the second half of this year, driven by the expansion of its overseas business and increased sales of key products. In particular, new revenue is expected to materialize starting in the third quarter as the global distribution partnership with Megagen Implant gains momentum.

In a recently released corporate analysis report, SANGSANGINVESTMENT&SECURITIES estimated Graphy Inc.’s consolidated revenue for the second quarter of this year at 6.5 billion won. This represents a 48.4% increase year-over-year and a 91.2% increase quarter-over-quarter. The firm also projected that the operating loss would narrow compared to the first quarter, in line with the revenue growth.

Ha Tae-gi, an analyst at SANGSANGINVESTMENT&SECURITIES, noted that revenue from shape-memory alloy (SMA) materials—the core component of Graphy Inc.’s flagship product, clear aligners—has been steadily increasing. He projected second-quarter SMA material revenue at 3.2 billion won, a 77.8% year-over-year increase. The analysis indicates that export growth is continuing as demand expands, particularly in North America, the Middle East, and Northern Europe. Exports account for approximately 90% of Graphy Inc.’s total revenue.

The analyst also predicted that the expansion of overseas operations would gain momentum in the second half of the year. The U.S. subsidiary is scheduled to begin operations in August, and in China, the supply of SMA materials and equipment is expected to commence in the second half of the year, separate from the medical device approval process. With sales of high-margin SMA materials increasing, the cost ratio is also expected to gradually stabilize.

The collaboration with Megagen Implant was also highlighted as a key growth driver. Graphy Inc. plans to leverage Megagen Implant’s global distribution network and digital dental platform to expand overseas supply of ceramic-containing resin for permanent dental crowns, surgical guides, and clear aligner materials. Analyst Ha noted, “We expect revenue to be generated through Megagen Implant as early as the third quarter.”

SANGSANGINVESTMENT&SECURITIES assessed the second half of this year as a crucial period for evaluating Graphy Inc.’s business performance. The firm projected third-quarter revenue of 8.8 billion won and fourth-quarter revenue of 16.8 billion won, analyzing that if revenue in the second half increases as expected, the likelihood of success for the SMA business could be rated even higher. The distribution partnership with Megagen Implant is also expected to further enhance this potential.

Furthermore, the firm noted that in the third quarter, Graphi is expected to receive European CE MDR certification for its SMA products and U.S. Food and Drug Administration (FDA) medical device (510(k)) approval for its ceramic-containing resin for permanent dental crowns. The FDA’s 510(k) is a medical device clearance system that allows a product to be sold in the U.S. upon recognition that its safety and efficacy are substantially equivalent to those of an already approved product. If Graphy Inc. receives 510(k) clearance, it is expected to be able to export to SUNJIN Co., Ltd. through Megagen Implant.

Research Analyst Ha stated, “If sales increase as expected in the second half of the year, the stock outlook for Graphy Inc. through the end of this year is very positive,” and maintained a ‘BUY’ investment rating.

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