InBody, a company analyzing body composition that registered record-high sales in the first quarter in 2016, is expected to maintain its growth tempo this year. Stock market analysts predicted the company’s products exported to hospitals in foreign countries, including the United States and China, will be a driving force for its growth.
“InBody’s export of goods for experts this year is expected to grow 11.9 percent from 2016, taking the lead in boosting the 2017 sales,” said a report by Shinhan Investment Corp. issued in mid-February. The report estimated InBody’s export would amount to 30.6 billion won ($26.7 million) this year, thanks to increased demand from foreign hospitals and fitness clubs.
Shinhan predicted most of the sales growth would come from the company’s U.S. and Chinese offshoots. It forecast the sales of InBody’s branches in the U.S., China, and Japan at 17.4 billion won, 15.9 billion won and 11.5 billion won, respectively, recording the growth rates of 27.5 percent, 19.9 percent, and 12.5 percent, from 2016.
|(source : InBody)|
Accordingly, the report readjusted upward InBody’s expected turnover this year from 84.9 billion won to 85.6 billion won, compared with the 2016 sales of 79.8 billion won.
KB Securities also predicted the high potential for InBody’s expansion in overseas markets. Among positive factors, the report cited as boosting InBody’s performances abroad were the company’s diversification of foreign marketing channels, sales growth of experts’ products resulting from new marketing strategy, the release of new products, including the InBody watch, and IoT (Internet of Things)-based reinvigoration of healthcare markets.
InBody currently accounts for 90 percent of the domestic body composition analysis market and 60 percent of its global market. The company’s market share will likely grow further because of population aging and increase in obesity rates.
“Body composition analysis provided by InBody measures figures concerning blood pressure, body fat, protein, and body water needed for the prevention of diseases. As people’s interests in their health increase, InBody will show rapid growth,” the brokerage said. “Particularly, obese people and senior citizens will likely pay much attention to body composition analysis market.”
“InBody’s overseas sales are not concentrated in one region but are spread evenly – to 31 percent in China, 21 percent in the U.S. and 18 percent in Japan,” the KB Securities report said. “For example, the company has found loyal clients in both large capitals and smaller clinics in Japan, postnatal care centers in China, massage parlors in spa markets in Malaysia, and fitness clubs in India.
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