A warning light has been turned on regarding Hass (Human-Aid System Supplier)'s earnings growth. After revenue stagnated for the past three years, the company is now facing concerns over a decline this year. The possibility of a shift into the red has also been raised as it recorded an operating loss through the first half. The key question is whether it can restore its competitiveness in the global dental materials market by leveraging its differentiated quality.
On Thursday, Hass said that it is focusing on entering the global market with its new dry-millable dental lithium disilicate material, “Amber DryMill.” It also emphasized plans to expand its business into advanced industrial sectors, such as glass substrates for semiconductor packaging, to add growth drivers.
Hass’s core business is dental glass ceramic (glass) restorative materials. Its representative product is the high-strength aesthetic material “Amber mill,” based on nanoscale lithium disilicate crystallized glass technology. The company explained that it offers aesthetics similar to natural teeth and relatively superior physical properties.
However, Hass has been struggling with earnings growth as competition intensifies in the global dental materials market against low-priced Chinese products. This is interpreted as being driven by the rising market share of cost-competitive Chinese products in key markets such as Europe and South America. Revenue remained in the 16 billion won range for three consecutive years from 2023 through last year. In the first half of this year, revenue fell approximately 6.4% year-on-year to 7.4 billion won, and the company swung to an operating loss of 1.4 billion won. Profitability deteriorated due to delays in negotiations to expand transactions with major North American distributors, as well as the reflection of new product development costs.
Hass assessed that Amber DryMill, which was launched domestically in July last month, will help break through growth stagnation given the significant interest from the dental market. It explained that the product is highly competitive by combining the convenience of dry milling with the unique aesthetics of glass ceramics. The company is proceeding with overseas regulatory approval procedures to launch the product in global markets in March next year.
In the medium to long term, Hass is also preparing to expand its business scope. Based on its technological expertise in dental materials, it plans to develop materials and processing technologies related to glass substrates for semiconductor packaging. Additionally, it is currently undertaking a project to develop low thermal expansion crystallized glass materials for application in the optical systems of 13.5-nanometer extreme ultraviolet (EUV) inspection equipment. The strategy is to broaden the application of its glass material design and processing technologies, accumulated in the dental restorative materials business, into advanced industrial fields.
While securing new growth drivers, Hass is simultaneously implementing policies to enhance shareholder value. Following a trust agreement for the acquisition of 3 billion won worth of treasury shares this year, it is proceeding with an additional acquisition of 1 billion won. The goal is to increase shareholder value through shareholder-friendly policies and to focus on strengthening business competitiveness for improving the company’s intrinsic value.
A company official said, “Amber DryMill, launched this year, is a new product focused on reducing equipment and operational constraints arising from existing processes centered on wet milling, and it has received positive reactions from related industries such as dental technicians.” The official added, “We will connect the positive initial response in the domestic market to actual orders and repeat purchases, and move to attack the global market through overseas regulatory approvals and expansion of distribution networks.”
The official further stated, “Going forward, we will examine commercialization possibilities by conducting research and development and technical verification to expand our business scope into glass substrates and optical materials,” adding, “Through this, we will strengthen the competitiveness of our dental materials business and add future growth drivers.”
in THEBIO
