PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Spine and bone-graft products together with a new hECM CDMO business are driving growth, but consolidated operating margin has clearly narrowed in recent quarters amid new subsidiary integration and upfront investment costs.
2025 consolidated revenue reached KRW 47.2bn with operating profit of KRW 3.8bn, turning from the prior year's operating loss to a profit.
Revenue kept rising through 2026 (Q1 KRW 13.0bn to Q2 KRW 15.3bn), but consolidated operating margin fell from around 15% in Q2 2025 to roughly 2% in the most recent quarters.
The company signed an hECM skin-booster CDMO contract with Kolon Pharma, formally launching its human-tissue-based biomaterial business.
IMM Private Equity's acquisition of a stake in parent company CG Bio is reported to have also brought control over CG MedTech.
The stock trades above book value per share, and, typical of an early-stage earnings recovery, the price-to-earnings multiple tends to run high.
CG MedTech manufactures spine and orthopedic implants, dental implants, and bone graft substitutes, and has recently expanded into human-tissue-based regenerative biomaterials.
Its core spine implant and bone-regeneration product lines are sold through domestic hospital networks; on a standalone basis, the spine implant lineup grew roughly 50% year over year and the bone-graft gel lineup roughly 41% in the first half of 2026.
The rhBMP-2-based bone substitute 'NovoSis Trauma,' launched in 2025 under an exclusive domestic distribution agreement with DePuy Synthes, grew about 94% in the same period and drove growth in the bone-regeneration segment.
In dental implants, the company has internalized digital design and precision-machining capabilities through the merger with GDS and the acquisitions of All Abutment and Dental Ocean, building out a digital dentistry value chain.
More recently, it acquired a human-tissue processing facility in Seongnam (REGEN Hub) and obtained a tissue bank permit change, entering the human extracellular matrix (hECM)-based biomaterial and skin-booster CDMO business.
In June 2026, it secured Kolon Pharma as its first CDMO customer for an hECM-based skin booster, with CG MedTech handling manufacturing, quality control and regulatory approvals while Kolon Pharma manages domestic sales and distribution.
The consolidated group also includes newly added, unrelated businesses such as DM Power, which operates in the electric power sector.
The parent company, CG Bio, is regarded, alongside L&C Bio and Hans Biomed, as one of the major players in Korea's tissue bank industry, having run human tissue graft operations for over a decade.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩12.6B | ₩1.9B | 15.1% |
| 2025Q3 | ₩11.3B | ₩1B | 8.7% |
| 2025Q4 | ₩11.5B | ₩300M | 2.8% |
| 2026Q1 | ₩13B | ₩200M | 1.8% |
| 2026Q2 | ₩15.3B | ₩300M | 2.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩41.2B | ₩400M | -₩18.5B | 1.0% | −32.1% | 145.2% |
| 2023 | ₩35B | -₩1.6B | ₩1.6B | −4.6% | 2.7% | 32.1% |
| 2024 | ₩34.6B | -₩1.1B | ₩59,691,629 | −3.2% | 0.1% | 23.6% |
| 2025 | ₩47.2B | ₩3.8B | ₩6.5B | 8.1% | 6.9% | 22.1% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue rose sharply to KRW 47.2bn in 2025 from KRW 34.6bn in 2024, and operating profit swung to KRW 3.8bn from a KRW 1.1bn operating loss in 2024. Owner's net income also improved substantially to KRW 6.5bn from a marginal KRW 0.06bn profit in 2024.
Looking further back, operating profit and net income have repeatedly diverged: in 2022 the company posted an operating profit of KRW 0.4bn yet an owner's net loss of KRW 18.5bn, reflecting a large one-off loss, while in 2023 an operating loss of KRW 1.6bn coincided with a net profit of KRW 1.6bn, pointing to significant non-operating volatility.
In the fourth quarter of 2025, operating profit was only KRW 0.33bn while owner's net income reached KRW 3.3bn, again suggesting a sizable one-off gain below the operating line.
On a quarterly basis, revenue climbed from KRW 12.6bn in Q2 2025 to KRW 15.3bn in Q2 2026, but operating profit fell from KRW 1.9bn to KRW 0.33bn over the same span, a clear narrowing of the consolidated operating margin.
The company attributes this to stabilization costs from newly consolidated entities, including an unrelated electric-power business, and upfront investment for new business lines. The debt ratio improved markedly, falling from 145.2% in 2022 to 22.1% in 2025.
Korea's spine and orthopedic implant market is expanding on rising demand from an aging population, alongside intensifying competition among domestic makers, while the bone graft and bone substitute segment is moving toward higher value-added, growth-factor-based products such as rhBMP-2.
The domestic dental implant market has seen slower growth, with competition increasingly centered on digital dentistry, including custom abutments and digital design.
The human-tissue-based regenerative medicine and ECM biomaterial market is growing on rising aesthetic demand for products such as skin boosters, and carries relatively high barriers to entry given the licensing required to operate as a tissue-processing entity.
Parent company CG Bio, alongside L&C Bio and Hans Biomed, has run human tissue graft operations for over a decade and holds American Association of Tissue Banks (AATB) certification.
In the allogeneic dermal ECM skin booster market, while incumbent brands focus on direct branding and distribution partnerships, CG MedTech has opted for a CDMO-based B2B supply model to build share independent of brand competition.
Overseas, global orthopedic companies including Johnson & Johnson MedTech and DePuy Synthes are reported to be commercializing products related to the parent group, suggesting room for the group's overseas channel to expand.
CG MedTech has set expanded spine/orthopedic manufacturing capacity, overseas sales growth, a digital dentistry value chain, and human-tissue/hECM CDMO expansion as its four growth pillars, targeting KRW 100bn in annual revenue by 2028 as a mid-term goal.
In 2026, its new Uijeongbu plant, built with a KRW 12.3bn investment, began commercial production, with process stabilization and utilization improvement remaining tasks for the second half.
The company said order backlog at newly consolidated DM Power, an electric-power business, would be recognized as revenue progressively from the second half.
In its hECM CDMO business, having secured Kolon Pharma as its first customer, the company was reported in a Hana Securities report dated June 24, 2026 to be in discussions with two to three additional companies on CDMO supply contracts.
On the capacity side, the company said it plans to build hECM production capacity of 10,000 units per month by the end of 2026 and 30,000 units per month by the first half of 2027, with a stepwise expansion toward 60,000 units per month thereafter.
In the same report, Hana Securities forecast 2026 consolidated revenue of KRW 59.6bn (up 26% year over year) and operating profit of KRW 2.9bn (5% operating margin, down 24% year over year), though these are the brokerage's own estimates and not confirmed results. That report initiated coverage with a 'Not Rated' opinion, without issuing an investment rating.
The share price sits above book value per share, meaning the stock trades with some premium to net assets. On an earnings basis, the price-to-earnings multiple that has formed since the 2025 return to profit tends to run on the higher side, as is typical in an early-stage earnings recovery.
The company does not pay a dividend, so no dividend yield metric is applicable. Because quarterly operating margin has been trending lower recently, how the earnings-based valuation should be read may shift depending on how profitability evolves going forward.
Market observers appear to be watching both the growth potential of the new hECM CDMO business and the pace of profitability recovery in the existing medical device business.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Having secured Kolon Pharma as its first CDMO customer, the company is reportedly in talks for two to three additional CDMO contracts. It has stated plans to raise production capacity to 10,000 units per month by the end of 2026 and 30,000 units per month by the first half of 2027.
Parent CG Bio's AATB certification and global supply experience have been cited as a potential foundation for overseas expansion.
On a standalone basis in the first half of 2026, spine implants grew about 50% year over year and bone-graft gel products about 41%. The rhBMP-2-based bone substitute NovoSis Trauma, sold under an exclusive agreement with DePuy Synthes, grew about 94%, emerging as a key growth driver. Combined sales of the three product lines rose roughly 58% year over year.
After a large net loss in 2022, the company showed a recovering earnings trend, with 2025 consolidated operating profit of KRW 3.8bn and owner's net income of KRW 6.5bn. The debt ratio also fell sharply, from 145.2% in 2022 to 22.1% in 2025, improving the balance sheet. Whether this recovery continues in coming quarters remains to be confirmed.
Consolidated operating margin fell from around 15% in Q2 2025 to about 2% in Q1-Q2 2026. The company attributed this to stabilization costs at newly consolidated entities, upfront investment for business expansion, and the timing of revenue recognition on certain orders. Revenue growth has not been matched by a corresponding improvement in profit in recent quarters.
In the dental segment, the company merged with GDS and acquired All Abutment and Dental Ocean, while DM Power, an electric-power business, was also brought into the consolidation. Absorbing entities from different industries has created stabilization costs and operational efficiency burdens that weigh on profitability. How much real synergy will emerge across these disparate businesses has not yet been demonstrated.
IMM Private Equity is reported to have gained control over CG MedTech through its acquisition of a stake in parent CG Bio. Under the deal structure, if CG Bio's stake is resold in the future, the remaining minority stake is reportedly agreed to be sold together.
Changes at the top of the ownership structure could affect the strategic direction or resource allocation at affiliate CG MedTech.
With consolidated operating margin having narrowed noticeably in recent quarters, initial investment in new businesses and subsidiary stabilization costs could persist. If revenue growth continues to outpace profit growth for an extended period, profitability concerns could deepen.
Beyond orthopedic and dental implants, the consolidated portfolio now includes an electric-power business, adding diversification to the business mix. Integrating and operating entities from unrelated industries could increase management complexity and cost burden.
The hECM-based human tissue product and skin-booster CDMO business depends on regulatory requirements such as tissue-processing licensure and approvals from Korea's Ministry of Food and Drug Safety. Expanding overseas could add regulatory burdens related to medical device and tissue bank rules in each target country.
The Q3 quarterly report should be checked to see whether consolidated operating margin rebounds and whether cost burdens from newly consolidated entities ease.
This is the period to check progress on utilization improvement at the Uijeongbu plant and whether DM Power's order backlog begins converting into recognized revenue.
Key items to watch are whether REGEN Hub's hECM production system reaches the targeted 10,000 units per month and whether additional CDMO customer contracts beyond Kolon Pharma are signed.
Progress on the plan to expand hECM production capacity to 30,000 units per month should be monitored.
CG MedTech achieved a consolidated turn to profit in 2025 as solid growth in its spine and bone-regeneration medical device business combined with its new entry into hECM CDMO, while the debt ratio also fell sharply, improving the balance sheet.
However, despite continued revenue growth into 2026, consolidated operating margin has narrowed noticeably, reflecting costs from newly consolidated entities and upfront investment.
A change at the top of the ownership structure, triggered by the sale of a stake in parent company CG Bio, is another factor worth monitoring.
The hECM CDMO business, having started with Kolon Pharma, has further customer acquisition and capacity expansion planned, and its progress will be a key variable in whether the broader business transition succeeds.
Whether the strong growth in spine and bone-regeneration products continues, and when the various M&A-added affiliates begin to meaningfully contribute to profit, are the central variables for future earnings.
This report does not provide an investment opinion or target price and is intended for informational purposes only.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.