[Edaily Reporter Kwon Oh Seok ] DB Securities announced on the 15th that it is maintaining its “Buy” rating on DIO Corporation(039840)but lowering its target price from 21,000 won to 16,000 won.

Kim Ji-eun, an analyst at DB Securities, stated, “We forecast third-quarter revenue of 39 billion won (down 5.8% year-over-year) and operating profit of 3.5 billion won (down 14.7%),” adding, “We expect revenue growth to be limited due to the off-season.”
She elaborated, “We expect revenue from China to reach 12.2 billion won (+20.2%). With the first phase of China’s VBP (Centralized Bulk Procurement System) set to expire in April 2026, the timing of the second phase remains uncertain,” adding, “There is a risk of distributor inventory adjustments until the allocation volumes for the second phase of the VBP are finalized.”
Nevertheless, he emphasized, “We expect to continue diversifying export markets and maintaining robust growth in key markets outside of China, such as Portugal, which is projected to generate 2.9 billion won (+37.0%).”
He also pointed out the need to assess financial soundness in the second half of the year. “Of the 112.2 billion won in consolidated accounts receivable at the end of the second quarter, accounts receivable overdue by 1–2 years totaled 14.9 billion won (40.4% of the total), a 69.3% increase from the previous quarter (8.8 billion won),” he said, “Compared to the decrease in the 6-month to 1-year range—which fell from 14.3 billion won to 8.9 billion won—we assess that delays in collecting accounts receivable are worsening,” he said.
Research Analyst Kim assessed, “A valuation re-rating driven by improved earnings will only be possible once momentum becomes visible—such as the expansion of the sales network in China’s third- and fourth-tier cities following the implementation of the second-phase VBP and the growth of European sales for new implant products targeting SUNJIN Co., Ltd.”