KOSDAQElectrical Equipment208370

SELVAS Healthcare

₩2,650▼ 2.21%2026-10-02 close

Market Cap

₩68.5B

Turnover

₩1B

Volume

360,000 shares

Shares out.

25.7M

PER

8.2×

PBR

0.9×

EPS

₩338

Dividend Yield

0.00%

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

Report overview

Core Device Recovery Meets AI Ultrasound JV Swing Factor

Selvas Healthcare's core body-composition-analyzer and Braille-terminal business turned profitable in the first half of 2026, but net income has swung sharply from quarter to quarter.

1
Consolidated operating profit turned negative at -KRW 0.16bn in 2025, which the company attributed to new R&D spending and higher bad-debt expenses.
2
Owners' net income surged to KRW 13.22bn in Q1 2026 before swinging to a loss of KRW 8.68bn in Q2 2026, a volatility far larger than the swings seen in operating profit.
3
Selvas InVision, a 51%-owned joint venture, reportedly secured an R&D investment of USD 10 million per year for 10 years (USD 100 million total) from Johnson & Johnson, as reported in December 2025.
4
The debt ratio has steadily declined from 37.1% in 2022 to 11.1% in 2025, reflecting an improving balance sheet.
5
First-half 2026 consolidated revenue rose 6.2% year-on-year with both operating profit and net income turning positive, according to WiseReport data.

Business structure

Founded in 1993, Selvas Healthcare specializes in medical diagnostic devices and assistive technology, operating around two brands: 'ACCUNIQ' for medical diagnostic equipment and 'HIMS' for information and communication assistive devices.

ACCUNIQ centers on body composition analyzers and automatic blood pressure monitors supplied through domestic and overseas fitness and medical distribution channels, emphasizing high measurement accuracy and software-driven user convenience.

HIMS produces the 'Hansone' Braille information terminal and reading magnifiers for the visually impaired, holding a strong domestic position while expanding into the US market.

Its parent company is AI specialist Selvas AI, and the group structure combines hardware capabilities with AI and software technology across affiliates.

In 2024 the company established the Selvas InVision joint venture with Israeli AI cardiac ultrasound firm UltraSight, holding a 51% controlling stake, with the JV reportedly holding exclusive distribution rights in Korea and Asia.

In body composition analyzers the company competes with domestic and global rivals, while the Braille terminal segment competes against overseas assistive technology makers.

The company operates overseas subsidiaries in the United States and China, building a global distribution network through both direct sales and agency channels.

In 2023, together with Selvas AI, it acquired a stake in patient monitoring device maker Medianah (Selvas Healthcare holding 5.83%), expanding the group's medical device portfolio.

Earnings trend

Quarterly revenue · Operating profit

₩6.7B-₩1B25Q2₩6.7B₩500M25Q3₩10.2B-₩21,896,90225Q4₩6.6B₩700M26Q1₩8.2B₩400M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩27.7B₩2.3B2022₩29.8B₩3.3B2023₩31.7B₩3.3B2024₩30.8B-₩200M2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩6.7B	-₩1B	−15.4%
2025Q3	₩6.7B	₩500M	8.1%
2025Q4	₩10.2B	-₩21,896,902	−0.2%
2026Q1	₩6.6B	₩700M	10.2%
2026Q2	₩8.2B	₩400M	4.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩27.7B	₩2.3B	₩2.7B	8.4%	8.1%	37.1%
2023	₩29.8B	₩3.3B	₩5.2B	11.2%	8.6%	11.0%
2024	₩31.7B	₩3.3B	₩3.2B	10.3%	4.9%	10.1%
2025	₩30.8B	-₩200M	₩3.9B	−0.5%	5.5%	11.1%

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

Earnings analysis

Annual revenue grew from KRW 27.7bn in 2022 to KRW 29.8bn in 2023 and KRW 31.7bn in 2024, before slipping to KRW 30.8bn in 2025. Operating profit held a double-digit margin range (roughly 8-11%) at KRW 2.32bn in 2022, KRW 3.35bn in 2023, and KRW 3.27bn in 2024, before turning negative at -KRW 0.16bn in 2025.

The company attributed the operating profit decline to new R&D investment costs and increased bad-debt expenses. However, with improved non-operating results, owners' net income in 2025 rose to KRW 3.89bn, actually higher than KRW 3.15bn in 2024.

Quarterly trends show pronounced volatility: after an operating loss of KRW 1.03bn and a net loss of KRW 0.46bn in Q2 2025, the company rebounded to an operating profit of KRW 0.54bn and net income of KRW 0.51bn in Q3, while Q4 operating profit was roughly break-even at -KRW 0.02bn even as net income jumped to KRW 3.64bn.

In Q1 2026, operating profit was KRW 0.67bn while net income surged to KRW 13.22bn, before Q2 2026 saw operating profit hold at KRW 0.37bn even as net income swung to a loss of KRW 8.68bn.

While operating profit has moved relatively gradually, net income has fluctuated by tens of billions of won on a quarterly basis, suggesting non-operating items have had a substantial influence on earnings quality.

Summing the four quarters from Q3 2025 through Q2 2026, owners' net income totals approximately KRW 8.70bn, which on an annualized basis exceeds the full-year net income levels recorded in 2024 and 2025.

Industry analysis

Korea's medical device industry is generally viewed as a growth sector supported by an aging population and expanding digital healthcare adoption. Analysts also project double-digit annual growth for the visual assistive device market, driven by expanded welfare policy and the integration of AI and ICT technologies.

In the diagnostic device segment covering body composition analyzers and blood pressure monitors, numerous domestic and international competitors are present, making accuracy and software-based usability key differentiators.

The assistive technology segment, including Braille terminals and reading magnifiers, is a relatively high-barrier niche market where the company is leveraging its domestic share to expand into markets such as the United States.

More recently, AI-integrated ultrasound diagnostics have emerged as a new growth axis, with reports citing global market research estimates for continued expansion of the worldwide ultrasound equipment market over the coming decade.

Major global medical device makers are increasingly embedding AI software into hardware platforms, highlighting collaboration structures with companies that hold software-centric AI diagnostic solutions.

However, this new business area remains at an early stage with limited revenue contribution so far, and numerous competitors are pursuing similar AI-convergence strategies, leaving market leadership fluid.

Outlook

The company's traditional business appears to be stabilizing, with revenue growth and a return to profitability confirmed in the first half of 2026.

The ACCUNIQ brand appears to be pursuing brand awareness through participation in global exhibitions, while the HIMS brand is reportedly working to maintain its domestic share for the Hansone product line while expanding profitability through US market entry.

Regarding the AI cardiac ultrasound solution developed through the Selvas InVision (UltraSight) joint venture, reports from December 2025 indicated that an R&D agreement with Johnson & Johnson was signed in the fourth quarter of 2025, with revenue recognition reportedly set to begin the following year, 2026.

However, the company reportedly declined to confirm specific revenue guidance or equity participation details.

UltraSight is reported to have obtained an additional US FDA approval for a version with added AI detection functionality, raising the possibility of commercialization through software updates alone without hardware replacement.

The key variable going forward is the timing and scale at which JV-related revenue is actually reflected in the financial statements, and no official revenue guidance has yet been confirmed.

With the company operating on two tracks — its traditional medical device and assistive technology business alongside the new AI ultrasound venture — the direction of future quarterly results is likely to depend on how the contribution of each track evolves.

Valuation

PER

8.2×

PBR

0.9×

ROE

12.5%

EPS

₩338

BPS

₩2,950

Dividend per share

₩0

Relative to net asset value, the current share price level appears to sit toward the lower end of the multi-year trading band, and it is notable that the stock trades below its net asset value per share.

On the earnings side, the shift from an operating loss in 2025 to profitability in the first half of 2026 represents a directional improvement, but the sheer scale of quarterly net income volatility makes it premature to treat this as evidence of earnings stability.

Regarding dividends, no payment history is confirmed based on recently disclosed per-share cash dividend figures, which would place the dividend yield on the conservative side relative to the industry average.

Valuation multiples appear to have swung significantly between periods when expectations around the AI ultrasound joint venture were priced in and periods reflecting only core-business results, a pattern that could recur depending on future news flow.

Ultimately, examining the company's asset value, earnings trend, and whether the new business actually generates recognized revenue together appears central to interpreting its valuation.

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

Bull factors

AI Ultrasound Collaboration with a Global Pharma Major

Reports from December 2025 indicated that the AI cardiac ultrasound solution held by joint venture Selvas InVision secured an R&D investment of USD 10 million per year for 10 years (USD 100 million total) from Johnson & Johnson.

The solution's versatility is notable in that AI functionality can reportedly be added via software update alone, without replacing existing ultrasound hardware such as laptop or cart-type devices. Reports have also indicated an additional US FDA approval for a version with added AI detection capability.

However, the actual timing and scale of revenue recognition under this agreement have not yet been confirmed through official company guidance.

Return to Profitability in the Core Business

First-half 2026 consolidated revenue rose 6.2% year-on-year, with both operating profit and net income reportedly turning positive.

The ACCUNIQ brand is reportedly strengthening brand recognition through participation in global exhibitions, while the HIMS brand's Hansone product is understood to have contributed to profitability improvement through maintained domestic share and expanded entry into the US market.

On a quarterly basis, operating profit remained positive from the fourth quarter of 2025 through the second quarter of 2026, in contrast to the loss recorded in the prior-year first half.

Improved Financial Soundness

The debt ratio has steadily improved, falling from 37.1% in 2022 to 11.1% in 2025. Total equity also expanded from KRW 32.9bn in 2022 to KRW 71.1bn in 2025. Operating cash flow remained positive at KRW 3.47bn and KRW 4.50bn in 2023 and 2024 respectively, and stayed positive at KRW 0.30bn in 2025.

The low debt ratio can be viewed as a factor supporting financial flexibility for new business investment or external shocks.

Bear factors

2025 Operating Loss

Consolidated operating profit turned negative at -KRW 0.16bn in 2025, down from KRW 3.27bn in 2024. The company attributed this to new R&D investment costs and higher bad-debt expenses.

Revenue also declined slightly from KRW 31.7bn in 2024 to KRW 30.8bn in 2025, marking a year of simultaneous slowdown in both top line and profitability.

Large Quarterly Net Income Volatility

Owners' net income surged to KRW 13.22bn in Q1 2026 before swinging to a loss of KRW 8.68bn in Q2 2026. Operating profit over the same period stayed relatively stable at KRW 0.67bn and KRW 0.37bn respectively, suggesting much of the net income swing originated from non-operating factors. This volatility makes it difficult to assess earnings sustainability based on quarterly results alone.

Uncertain Timing of New Business Revenue Realization

Revenue recognition tied to the J&J R&D investment was reported to begin in 2026, but the company reportedly declined to confirm specific revenue guidance or details of equity participation.

The AI ultrasound field is highly competitive, with numerous global companies developing similar technologies, and delays to the commercialization timeline cannot be ruled out.

Risk factors

Earnings Quality and Non-Operating Volatility

Net income has repeatedly shown swings far larger than operating profit in recent quarters, suggesting non-operating factors such as investment asset valuation gains or losses have had a considerable impact on results.

Under this structure, a large net income figure in one quarter cannot be ruled out from reversing in the opposite direction in a subsequent quarter. When interpreting results, it is necessary to distinguish between operating profit and net income.

Intensifying Competition and Overseas Approval Risk

The diagnostic device market for body composition analyzers and blood pressure monitors involves numerous domestic and international competitors, and the AI ultrasound field is similarly competitive as major global medical device makers develop comparable technologies.

The timing and success of regulatory approvals such as FDA clearance in various countries can affect the pace of overseas expansion. Regulatory changes or approval delays are factors that could disrupt revenue growth timelines.

Governance Structure and Capital-Raising History

The company has a history of raising funds through rights offerings, and its equity relationships with parent Selvas AI and affiliated companies are intertwined. If additional capital is raised to fund new business investment, the possibility of dilution for existing shareholders cannot be ruled out.

Business realignments or changes in equity structure among affiliates are also variables investors should monitor.

What to watch next

By November 16, 2026
The legal filing deadline for the Q3 2026 quarterly report, a point to check the disclosed Q3 revenue, operating profit, and net income figures.
During Q4 2026
Verification is needed on whether the 'revenue recognition start in 2026' tied to the J&J R&D investment, as mentioned in December 2025 reports, is actually reflected in the financial statements.
From Q4 2026 onward
It is worth monitoring whether Selvas InVision (the UltraSight JV) discloses additional supply agreements with major global medical device makers or new FDA/CE approvals.
Around March 2027
The expected timing for the 2026 annual business report, at which point recovery from the 2025 operating loss to full-year profitability can be confirmed.
At upcoming quarterly disclosures
It will be useful to check the revenue contribution from the HIMS brand's expanding US market entry, and whether quarterly net income volatility moderates.

Overall view

Selvas Healthcare presents a structure combining a stable core business in body composition analyzers and Braille terminals with expectations for a new AI cardiac ultrasound venture that has attracted R&D investment from Johnson & Johnson.

Consolidated operating profit turned negative in 2025, but the first half of 2026 saw both revenue growth and a return to profitability in operating profit and net income.

However, quarterly net income has swung sharply, from KRW 13.22bn to a loss of KRW 8.68bn, diverging significantly from the operating profit trend, making it difficult to draw simple conclusions about earnings quality. Financial soundness continues to improve, with a declining debt ratio and steadily expanding equity.

For the AI ultrasound venture, favorable news flow has continued, including the J&J collaboration and additional FDA approval, but the actual timing and scale of revenue recognition remain officially unconfirmed.

Investors should consider both the recovery of earnings stability in the core business and progress toward revenue realization in the new venture when forming their own assessment.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-10-01 · Data as of 2026-09-30

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.