PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩178 per share · Prices as of the 2026-10-02 close
DRGEM has sustained a quarterly earnings recovery since Q3 2025 while diversifying beyond its core X-ray business into C-arm and ultrasound products.
Q1 2026 revenue reached KRW 27.3 billion and operating profit KRW 2.7 billion, up 17% and 50.3% year over year respectively, with an operating margin of 10%.
General DR products accounted for 78.4% of Q1 2026 revenue, remaining the company's core revenue driver.
The mobile C-arm 'PROVUE' obtained domestic manufacturing certification in July 2026, with a global launch planned for the second half of the year.
Annual revenue has been flat, falling from KRW 110.2 billion in 2022 to KRW 102.7 billion in 2025, but revenue and net profit have clearly recovered over the most recent four quarters (Q3 2025-Q2 2026).
The debt ratio declined from 72.1% in 2022 to 32.4% in 2025, indicating an improved balance sheet.
Founded in 2003, DRGEM is a medical device company specializing in X-ray systems, directly designing and manufacturing core components such as diagnostic X-ray imaging systems and X-ray generators.
Its product portfolio consists of fixed digital X-ray (General DR), mobile digital X-ray (Mobile DR), and related parts and software, with General DR accounting for 78.4% of Q1 2026 revenue, Mobile DR 7.0%, and other parts and products 14.6%.
The company has recently added the mobile C-arm 'PROVUE' and ultrasound diagnostic devices 'DS20' and 'DS30,' expanding from an X-ray-centric business into an integrated diagnostic imaging solutions provider.
Proprietary software 'RADMAX' and the image management system 'GEMPACS' give the company solution-level competitiveness beyond hardware alone.
In terms of ownership, CEO Park Jung-byung is the largest shareholder, while Japan's FUJIFILM Corporation holds a stake as the second-largest shareholder, creating an equity link with a global imaging peer.
Competitively, the company faces domestic rivals Rayence and Vieworks, as well as century-old global medical device majors GE Healthcare, Siemens, and Philips. The company has stated it holds roughly a 10% share of the global X-ray equipment market.
The workforce numbers around 220 employees, with production operated out of its Gwangmyeong headquarters and a second plant in Gimcheon.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩27.2B | ₩2.8B | 10.4% |
| 2025Q3 | ₩24.4B | ₩2.2B | 9.1% |
| 2025Q4 | ₩27.9B | ₩2.2B | 7.7% |
| 2026Q1 | ₩27.3B | ₩2.7B | 10.0% |
| 2026Q2 | ₩29.9B | ₩3.5B | 11.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩110.2B | ₩17B | ₩14.4B | 15.4% | 19.5% | 72.1% |
| 2023 | ₩112.9B | ₩10.1B | ₩9.2B | 8.9% | 11.6% | 61.9% |
| 2024 | ₩104B | ₩8.9B | ₩10.1B | 8.5% | 11.7% | 40.8% |
| 2025 | ₩102.7B | ₩9B | ₩6.8B | 8.8% | 7.4% | 32.4% |
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
DRGEM's annual revenue rose slightly from KRW 110.165 billion in 2022 to KRW 112.917 billion in 2023, then declined for two consecutive years to KRW 104.006 billion in 2024 and KRW 102.746 billion in 2025.
Operating profit fell sharply from KRW 16.959 billion in 2022 to KRW 10.071 billion in 2023 and KRW 8.850 billion in 2024, before recovering modestly to KRW 9.025 billion in 2025.
Net profit attributable to owners fluctuated from KRW 14.393 billion in 2022 to KRW 9.191 billion in 2023, KRW 10.147 billion in 2024, and KRW 6.779 billion in 2025. Operating margin fell from 15.4% in 2022 to the 8% range in 2023-2024, edging up slightly to 8.8% in 2025.
On a quarterly basis, revenue of KRW 27.170 billion and operating profit of KRW 2.833 billion in Q2 2025 briefly dipped to revenue of KRW 24.356 billion and operating profit of KRW 2.211 billion in Q3 2025, before trending clearly higher: revenue of KRW 27.881 billion in Q4 2025, revenue of KRW 27.328 billion and operating profit of KRW 2.738 billion in Q1 2026, and revenue of KRW 29.887 billion and operating profit of KRW 3.496 billion in Q2 2026.
Net profit attributable to owners also grew substantially, from KRW 0.906 billion in Q2 2025 to KRW 3.576 billion in Q2 2026, with Q1 2026 net profit of KRW 3.982 billion actually exceeding operating profit of KRW 2.738 billion, suggesting some non-operating income contribution.
On the cash flow side, operating cash flow jumped from KRW 3.676 billion in 2024 to KRW 11.613 billion in 2025, indicating improved cash conversion quality.
The balance sheet also stabilized, with equity growing from KRW 73.633 billion in 2022 to KRW 92.112 billion in 2025 and the debt ratio falling from 72.1% to 32.4%.
The global X-ray and digital radiography (DR) market continues to see a shift from film and CR-based systems to digital systems, with an estimated latent replacement demand tied to legacy analog and CR equipment still in service.
Market competition is fairly concentrated at the top, and vertically integrated global majors including Varex Imaging, Canon, Siemens Healthineers, GE HealthCare, and Fujifilm are seen as holding a margin advantage over component assemblers.
In contrast, Asian manufacturers such as iRay Technology, Vieworks, Rayence, and DRTECH leverage lower labor costs and export subsidies to supply developing markets at relatively lower prices.
By region, Europe is expected to account for 26% of global unit sales in 2025, while South America's share is projected to expand on the back of digital health adoption policies in Brazil and Argentina.
Domestic competitors include Rayence and Vieworks, and the company itself has flagged the faster new-product development pace of Chinese manufacturers as a competitive risk.
Against this backdrop, DRGEM has pursued an in-house component strategy, self-developing generators, tables, stands, collimators, and software, and localizing a substantial portion of its X-ray tubes, sourcing over 90% of parts by count and 70-75% by value internally.
This vertical integration is described as supporting both price and quality competitiveness as well as faster customer response.
Commercializing new products still requires navigating multi-region regulatory compliance burdens, including US FDA 510(k) clearance, EU Medical Device Regulation, and China's NMPA approval process.
The company is pursuing a 'two-stage growth strategy' that combines upgrading its core X-ray business with phased entry into adjacent imaging device markets such as C-arm, ultrasound, and CT.
The mobile C-arm 'PROVUE' obtained domestic manufacturing certification in July 2026 across three models (PROVUE-5S, 15S, 5A), with a global commercial launch planned for the second half of 2026 following further development and mass-production preparation.
The device incorporates a denoising algorithm co-developed with KAIST, designed to maintain image clarity even in low-dose settings. Reports indicate the mobile X-ray unit 'RAYMO' obtained US FDA clearance, providing a foothold for a stepped-up push into the North American market.
The company showcased its integrated diagnostic portfolio, including C-arm and ultrasound products, at major international exhibitions such as KIMES 2026 in March and ECR 2026 in Vienna, Austria.
In a December 2025 interview, CEO Park Jung-byung said he expected 2026 revenue to rise about 25% year over year to roughly KRW 130 billion, a target directionally consistent with the recent quarterly recovery but not yet confirmed through official disclosure.
Efficiency gains from the completed second Gimcheon plant and a newly built manufacturing execution system (MES) are also cited as variables that could affect second-half results.
However, since the new C-arm, ultrasound, and CT markets are already dominated by GE Healthcare, Siemens, and Philips, the pace and scale of early revenue contribution will need to be confirmed through upcoming quarterly disclosures.
DRGEM's recent results show revenue and net profit recovering since Q3 2025, following a period of profit stagnation in 2023-2024.
Compared with 2022, when operating margin exceeded 15%, the recent margin has settled in the high single digits, a shift that can be attributed to the structural fade-out of pandemic-era demand.
The company has continued to pay cash dividends in recent years, and whether this policy persists will likely be assessed alongside the pace of earnings recovery.
Net equity has grown steadily, pointing to a solid capital base, though the market-assigned relationship between share price and net assets can shift with sentiment and growth expectations at any given time.
As the C-arm and ultrasound businesses are still in an early stage, how the market values the company going forward may hinge on how quickly these new segments contribute to revenue.
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
Revenue, operating profit, and net profit have improved for four consecutive quarters from a Q3 2025 trough. Q1 2026 operating margin rose to 10%, up 2.2 percentage points year over year, and Q2 2026 operating profit of KRW 3.496 billion marked a recent quarterly high. The recovery is attributed to expanding overseas orders and strong sales of core products.
The mobile C-arm 'PROVUE' has obtained domestic manufacturing certification and is preparing for a global launch in the second half of the year, extending the business beyond X-ray into other imaging device categories. Adding ultrasound devices DS20 and DS30 opens room for integrated hospital solution sales.
However, these new businesses are still at an early commercialization stage, and their revenue contribution has not yet been confirmed.
The company exports to roughly 130 countries through a network of about 300 dealers, giving it a sales structure with relatively low concentration risk in any single customer or region. It is known to internally source over 90% of parts by count through self-developed core components such as generators. This is described as supporting price competitiveness and rapid technical support.
Annual revenue actually declined from KRW 110.2 billion in 2022 to KRW 102.7 billion in 2025, with growth clearly slowing after the pandemic-driven surge faded. Operating margin also nearly halved, from 15.4% in 2022 to 8.8% in 2025.
Whether the recent quarterly recovery translates into a reversal of the annual trend requires further confirmation.
The company itself acknowledges that Chinese manufacturers develop new products faster than domestic firms, and low-cost Asian rivals are seen as having a price advantage in developing markets. This could pressure pricing in DRGEM's core emerging-market export business.
Past experience with inventory losses on obsolete materials following the post-pandemic demand slowdown also illustrates vulnerability to demand volatility.
The C-arm, ultrasound, and CT markets are already dominated by century-old medical device majors GE Healthcare, Siemens, and Philips. Global majors are seen as holding a margin advantage over assemblers through vertical component integration. As DRGEM's new businesses are still at an early commercialization stage, market penetration may take time.
As an export-focused company generating a substantial share of revenue overseas, DRGEM is exposed to currency fluctuations and regional geopolitical risk. In its Q1 2026 earnings release, the company explicitly cited geopolitical risk in the Middle East as a factor that could affect results. Sudden demand shifts in specific countries or regions could increase quarterly earnings volatility.
Expansion into C-arm, ultrasound, and CT requires individually satisfying regulatory certifications in each market, including FDA, CE marking, and local manufacturing approvals.
As these new businesses are still in early commercialization, the timeline for achieving targeted market penetration and profitability remains uncertain. The possibility of losing ground on price and technology to entrenched larger competitors cannot be ruled out.
The company has explained that a sharp demand drop following the fading of pandemic-era demand led to previously stockpiled materials becoming obsolete inventory, generating related costs. This suggests a similar inventory loss risk could recur if future demand forecasts prove inaccurate. Fluctuations in raw material and component prices are also a variable that could affect the cost structure.
Q3 2026 preliminary earnings disclosure should be checked to confirm whether the revenue and operating profit recovery seen over the past four quarters continues.
The timing of the global official launch of the mobile C-arm 'PROVUE' and its initial order and sales traction should be monitored.
The likelihood of reaching the annual revenue target of roughly KRW 130 billion (about 25% growth year over year) mentioned by CEO Park Jung-byung in December 2025 should be checked against cumulative quarterly results.
The 2026 annual business report should be checked to confirm the actual revenue contribution of the new C-arm and ultrasound businesses and finalized annual results.
DRGEM has shown four consecutive quarters of improving revenue and net profit since Q3 2025, following a period of profit deceleration in 2023-2024.
Expanding overseas orders for its core General DR products drove the recovery, and the balance sheet has also stabilized, aided by a declining debt ratio and improved operating cash flow.
At the same time, the company is pursuing a transition from an X-ray-centric business to an integrated diagnostic imaging solutions provider, spearheaded by the mobile C-arm 'PROVUE' and ultrasound diagnostic devices.
However, these new businesses remain at an early commercialization stage, and the C-arm, ultrasound, and CT markets are already occupied by established majors such as GE Healthcare, Siemens, and Philips, meaning it will take time to confirm results.
The rapid new-product development pace of Chinese competitors, geopolitical risk, and inventory risk tied to demand volatility are additional factors to weigh.
Upcoming quarterly disclosures and the revenue contribution of the new businesses are likely to be the key variables in assessing the company's medium- to long-term growth trajectory.
Report written 2026-09-05 · Data as of 2026-09-04
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