Epsys Expects Stronger Second-Half Performance with 20% Annual Overseas Growth Target

Epsys (6918-TW), a manufacturer of orthopedic trauma medical devices, announced that its second-half operations will outperform the first half, driven by the gradual success of overseas market expansion and steady growth of new products in the domestic market. The company expects second-half revenue to account for over 50% of total annual revenue, with overseas market initiatives showing clear results and targeting 20% annual growth over the next two to three years.

General Manager Jason Lo stated that historically, the company's second-half revenue has consistently exceeded 50%, and with simultaneous contributions from both domestic and international markets, this year's second half is expected to maintain a similar performance level. Overseas markets are showing strong momentum: in Vietnam, shipments resumed in the first half following successful license renewal, resolving prior supply shortages. In the Chinese market, optimized product portfolios and new product launches are expected to be key growth drivers in the second half.

Chairman Simon Lee noted that overseas revenue accounted for approximately 25% of total revenue in the first half of this year, with China representing the largest share, while other overseas markets contributed about 2%.

Jason Lo further highlighted that due to significant growth potential in Southeast Asia, the company is actively expanding into markets including Singapore, Malaysia, Thailand, and Vietnam. Epsys is continuously adding distributors and applying for necessary certifications, with a goal of achieving 20% annual growth in overseas markets.

Regarding the Chinese market, Epsys explained that in recent years, high-volume medical devices have been included in centralized procurement programs, resulting in lower prices and profitability. As a result, Epsys has reduced its reliance on centralized procurement products. Currently, non-centralized procurement products account for approximately 70% of its revenue in China. Among these, hallux valgus correction devices and carbon fiber bone plates are the top contributors, representing about 36.5% of total revenue in China, with strong and sustained growth momentum.

Additionally, Epsys is actively planning market entry into Japan and Indonesia. Progress in Japan is particularly advanced. Jason Lo revealed that Japanese distributors have already visited Taiwan to discuss OEM collaboration. The Japanese side is expected to return in September, and if cooperation proceeds smoothly, it could further boost momentum in overseas markets.