SG Healthcare turns to operating profit in Q1 2026, improves financial structure with reduced net debt, but large supply contract execution delay remains a risk
Q1 2026 consolidated revenue: 4.94B KRW (up 35% YoY), operating profit: 0.16B KRW (vs -0.29B KRW loss a year ago), marking a turnaround in profitability
Net profit attributable to parent: 0.03B KRW (vs -0.40B KRW loss), basic EPS 2 KRW (vs -38 KRW)
Net debt ratio improved to 12.57% from 20.95% at year-end 2025, total borrowings 7.47B KRW, cash 3.75B KRW
Large Uzbekistan medical equipment supply contract (12.56B KRW) is 90% delivered, with 9.99B KRW received; remaining balance of 1.26B KRW pending installation
AI software (IAI) via subsidiary Mint Labs (51% stake) and diagnostic imaging center expansion in Kazakhstan (Seoul Medical Center) as growth drivers
Post-SPAC merger, actual 2025 revenue of 25.0B KRW missed projection of 42.1B KRW (gap 40.8%), raising concerns over earnings visibility
Major shareholder stake: 28.74%, treasury shares 330,012 (2.79%), share count increased due to stock option exercises
[AI Summary]SG Healthcare's Q1 2026 turnaround to profit and improved leverage signal fundamental recovery, but the history of delayed large contract revenue recognition and significant forecast misses warrants careful assessment of stock valuation and investment risk.