[Edaily Reporter SONG YOUNG-DOO ] #SEERS Technology is rapidly emerging as the most profitable company among domestic pharmaceutical, biotech, and healthcare firms. In the first half of this year, the company generated 26.8 billion won in operating profit out of 60.9 billion won in revenue, posting an operating profit margin of 44%. Simply put, this means that for every 1,000 won in sales, the company earned 440 won in operating profit.

What’s noteworthy is that it’s not just the profit margin that’s high; during the same period, revenue increased by 407% year-over-year, and operating profit soared by a staggering 2,888%. This is the exact opposite of what typically happens with high-growth companies, where profitability declines due to rising costs as they scale up. SEERS is proving its “high-growth, high-profit” structure with hard numbers, maintaining an operating profit margin in the 40% range even as revenue surges.

In particular, SEERS’ profitability stands out even when compared not only to medical AI and patient monitoring companies but also to traditionally high-margin healthcare firms in sectors such as dermatology and cosmetic procedures. Among domestic pharmaceutical, biotech, and healthcare companies, SEERS ranks among the very top when evaluated based on “how much profit is generated from sales” rather than “how much is sold.”

Beyond Medical AI to Skin Care: The Significance of a 44% Profit Margin

In the first half of this year (on a consolidated basis), SEERS posted revenue of 60.9 billion won and operating profit of 26.8 billion won. It surpassed both its full-year revenue of 48.1 billion won and operating profit of 16.3 billion won from last year in just half a year.

It is also noteworthy that the growth rate of operating profit has outpaced that of revenue, and the company has maintained an operating profit margin in the 40% range for four consecutive quarters since turning a profit in the second quarter of last year. This is not a one-time spike in profitability; rather, the company is sustaining high profit margins even as its revenue scale expands.

The difference becomes even more pronounced when compared to competitors in the same industry. A significant number of medical AI companies have yet to break even. The operating profit margins for the first half of this year for #MEZOO Co., Ltd. and MEDIANA Co.,LTD(041920), both in the patient monitoring sector, were 19.1% and 12.2%, respectively—showing a significant gap compared to SEERS.

Even when expanding the comparison to the skin care sector, which is known for its high profit margins, SEERS’ profitability stands out. In the first half of this year, SEERS’ operating profit margin exceeded those of leading high-margin healthcare companies such as CLASSYS Inc.(214150) (42.1%), Hugel, Inc.(145020) (40.7%), PharmaResearch(214450) (38.1%), and SEERS TECHNOLOGY(458870) (44%).

Even across the entire KOSDAQ market, operating profit margins in the 40% range are rare. Among the top-tier companies by market capitalization, only a handful—including Alteogen Inc.(196170), HPSP Co., Ltd., and LEENO Industrial Inc.—have recorded operating profit margins higher than SEERS’. In particular, it is difficult to find any of these companies that, like SEERS, achieved an operating profit margin in the 40% range while experiencing revenue growth of over 400% year-over-year.

Profits Grew Faster Than Revenue… Platform Effect Takes Full Hold

Analysts suggest that SEERS’ business structure is driving increased profitability. Its core business—the wearable AI inpatient monitoring platform “thynC™”—rapidly expanded its market presence, with over 10,000 new bed installations in the first half of this year alone.

thynC™ has a revenue structure that differs from that of typical medical device sales. It is a platform that collects and analyzes patients’ vital signs in real time by integrating with a hospital’s wireless infrastructure and electronic medical records (EMR). As the number of bed installations increases, revenue does not stop at simply rising device sales; revenue from platform operations and services also accumulates.

Conversely, because the company leverages its existing platform and operational infrastructure, costs do not rise proportionally with the number of beds. Once a certain scale is reached, a significant portion of additional revenue can translate directly into profit. This explains why SEERS’ operating profit surged 2,888% while revenue increased 407% year-over-year.

Consequently, analysts suggest that the key indicator for future performance is not simply revenue but the rate of growth in the number of beds under operation. The company is targeting the installation of 30,000 beds this year. Considering the total number of hospital beds in South Korea, its current market penetration rate remains in the early stages.

With an operating profit margin currently in the 40% range, there is potential for the operating leverage effect to grow even further as the number of operational beds increases. Although the company has already secured high profitability, there remains significant room for further market penetration in South Korea.

The company’s enterprise value is also drawing attention. SEERS posted an operating profit of 26.8 billion won in the first half of this year alone—64% higher than the 16.3 billion won in operating profit earned during all of last year. Conversely, its market capitalization has fallen to the 900 billion won range due to recent corrections in the KOSDAQ market and a weakening of investor sentiment toward growth stocks. How the market will assess the gap between the company’s earnings growth rate and its current enterprise value is also a point of interest.

In particular, it is worth noting that the majority of its current earnings are generated from domestic operations. Full-scale revenue from the U.S. and Middle East businesses that SEERS is preparing to launch has not yet been properly reflected in its financial results. In effect, the current 44% operating profit margin has been achieved almost entirely through domestic operations.

SEERS applies the business model it has proven in Korea to its overseas operations as well. Rather than establishing large-scale direct sales organizations in each country, the company enters markets through partners with established local healthcare networks. It is applying the same strategy overseas that it used in Korea to rapidly expand its market by collaborating with DAEWOONGPHARMACEUTICAL(069620).

Regarding products, rather than building new production facilities exclusively for overseas markets, the company supplies “mobiCARE™,” a wearable ECG monitoring solution produced in-house in Korea. The company explains that this approach minimizes the burden of large fixed costs during the process of expanding overseas sales.

Sales in the U.S. and the Middle East Are Just Beginning

Another key factor overseas is the higher reimbursement rates for arrhythmia testing compared to South Korea. According to the company, reimbursement rates for arrhythmia testing in major markets such as the U.S. and the Middle East are at least three to eight times higher than in South Korea. This structure allows the company to secure higher revenue from the same product compared to the domestic market.

In June, SEERS obtained 510(k) premarket clearance from the U.S. Food and Drug Administration (FDA) for mobiCARE™. In the UAE, the company has signed a supply agreement with PureHealth, the country’s largest healthcare group, and is moving forward with commercialization.

Ultimately, two factors will determine SEERS’ future performance. Domestically, the key will be how quickly the number of hospital beds operated through Think increases; overseas, it will depend on how quickly Mobicare generates commercial revenue in the U.S. and the Middle East.

If the company maintains its current level of cost efficiency overseas, revenue growth is highly likely to translate directly into increased operating profit. Given that the domestic business alone has already generated a 44% operating profit margin, analysts suggest that the overseas business could serve not only as a driver of revenue growth but also as a key source of additional profit leverage.

A SEERS official stated, “The most significant aspect of our first-half results is not simply the substantial increase in revenue or operating profit, but the fact that we are sustaining an operating profit margin in the 40% range even amid rapid revenue growth,” adding, “Our business structure, in which profitability expands alongside the scale of the platform business, is being confirmed by actual figures.”

In particular, the official emphasized, “The domestic wearable patient monitoring market is still in its early stages, and our overseas operations have not yet begun to contribute significantly to earnings,” adding, “Rather than focusing on short-term stock price movements, we will continue to execute our planned initiatives—such as expanding the number of hospital beds in Korea, enhancing our platform, and entering the U.S. and Middle Eastern markets—to demonstrate our corporate value through medium- to long-term performance.”