[Edaily Reporter Kim Jinsoo ] JVM CO., LTD(054950)has signaled the dawn of an era of 20% annual operating profit margins by boosting profitability alongside its revenue growth. The expansion of overseas sales of “Menis,” a high-value-added automated dispensing system; the launch of a new hospital-use “narcotics storage cabinet”; and price increases for consumables are cited as the three pillars of this profitability improvement.

According to financial information provider FnGuide on the 2nd, JVM CO., LTD is projected to exceed an operating profit margin of 20% this year. While JVM CO., LTD’s operating profit margin had previously remained in the 10% range, breaking the 20% barrier this year marks the beginning of a full-scale expansion in profitability.

This improvement in profitability is evident in the first-half results. Consolidated revenue for the first half of this year reached 94.8 billion won, a 4.9% increase from the same period last year, while operating profit rose 15.4% to 22.8 billion won. This means operating profit grew at more than three times the rate of revenue. In particular, in the second quarter, the company recorded revenue of 49.3 billion won and operating profit of 13.5 billion won, pushing the operating profit margin up to 27.4%.

According to FnGuide’s forecast, JVM CO., LTD’s operating profit is projected to rise from 33.3 billion won last year to 39.0 billion won this year, 41.3 billion won next year, and 45.3 billion won in 2028. The average annual growth rate of operating profit exceeds 10%.

High-Margin Menis and Expanding Overseas Sales

JVM CO., LTD’s primary growth driver is high-value-added export equipment, including Menis. Menis is a large-scale, factory-style pharmacy system featuring a multi-jointed collaborative robotic arm that automatically performs tasks ranging from exchanging and arranging medication canisters to packaging and inspection. It can dispense an average of 120 packets per minute and stores inspection results as photos and data, which can be utilized for prescription information analysis and medication tracking.

JVM CO., LTD temporarily scaled back sales in the second half of last year while improving Menis’s inspection capabilities and overall equipment performance, but resumed sales in North America and Australia in the first quarter of this year following the completion of the upgrades. Given its high unit price, Menis contributes to improved profitability.

Since Menis is primarily used in batch-dispensing pharmacies—which are well-suited for reducing labor costs—additional sales are expected in Northern Europe, North America, and Australia. In particular, because Menis is structured such that demand for consumables, such as pouches, follows equipment sales, it is expected to play a significant role in revenue growth.

It is also worth noting that overseas prices are higher than domestic prices. The average overseas selling price for the Automated Dispensing System (ATDPS) is about twice that of the domestic market, and it is reported to generate approximately 10% higher margins. In the first half of this year, the export share exceeded half, reaching 51.4%.

A JVM CO., LTD official stated, “Menis is a product that has consistently contributed to export performance since its development,” adding, “As it is a high-priced, high-margin piece of equipment, we expect that expanded sales will gradually contribute to improved profitability.”

Drug Storage Cabinet Launched Targeting Large Hospitals

The “Drug Storage Cabinet

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” launched in June of this year, is expected to go on sale soon, primarily at large domestic hospitals. The controlled substance storage cabinet stores controlled substances in individually locked compartments for each medication and links with the Hospital Information System (HIS) to manage dispensing and inventory in real time. It enhances the safety of controlled substance management by supporting dual locking, two-factor authentication, user-specific access permissions, and video recording of restocking and dispensing processes.

Existing controlled substance storage cabinets featured heavy doors with manual locks, posing a risk of key loss. They also had limitations in tracking usage history and inventory, as well as the problem of increased workload due to manual management of dispenses and returns.

In contrast, the JVM controlled substance storage cabinet stands out because it links prescription, user, video, and inventory data to track the entire lifecycle of controlled substances. As incidents involving controlled substances in hospitals have become increasingly frequent recently, demand for this product is expected to continue growing.

In particular, JVM CO., LTD can leverage its existing network of large hospital clients, having previously supplied its existing automated pharmaceutical management system, “IntiPharm,” to approximately 70 tertiary and general hospitals. This is expected to accelerate the new product’s market entry.

Consumables Account for 42% of Revenue; Price Hike Effects Take Full Effect

The key to JVM CO., LTD’s profitability improvement lies in consumable prices. Once equipment such as ATDPS is installed, the company must continuously supply consumables—such as pouch rolls and ink ribbons used for pharmaceutical packaging. While equipment sales represent one-time revenue, consumables generate recurring revenue based on the cumulative number of units installed.

In 2025, JVM CO., LTD’s revenue from major consumables is projected to reach 72.8 billion won, accounting for 42.1% of total revenue. In the first half of this year, the share of consumables rose further to 45.4%, and second-quarter consumables revenue reached 22.7 billion won, a 25.3% increase from the same period last year.

JVM CO., LTD had previously limited price increases for consumables as much as possible to reduce the burden on users, but earlier this year, it was forced to raise consumable prices by 20% due to rising raw material costs, such as those for low-density polyethylene (LDPE). Once the effects of these price hikes begin to reflect in the company’s financial results, profitability is expected to accelerate.

JVM CO., LTD official stated, “We expect both revenue and profits to grow driven by the expansion of high-margin overseas exports and the launch of new products.”