This article was published on June 22, 2025, at 10:17 a.m. on ChosunBiz MoneyMove site.
Domestic private equity fund (PEF) management company YJA Investment (hereinafter YJA) expects to recover its investment in JPI Healthcare after six years. However, recent performance has been somewhat sluggish, and there are concerns that the recovery of the investment may take time due to the poor stock trends of corporations related to X-ray.
According to investment banking (IB) industry sources on the 22nd, the Korea Exchange announced that the KOSDAQ Market Division held a review meeting on the 19th and approved the preliminary listing examination for JPI Healthcare. The company plans to launch the initial public offering (IPO) after preparing all necessary documents for the securities registration.
As JPI Healthcare prepares for its listing on KOSDAQ, its second-largest shareholder YJA is also expected to recover its investment. JPI Healthcare is a specialized corporation in digital X-ray systems that manufactures and develops various types of X-ray. Last year, it recorded sales of 45 billion won and an operating profit of 3.9 billion won.
YJA made an investment of about 20 billion won in JPI Healthcare through a project fund in 2019. At that time, JPI Healthcare's valuation was estimated to be around 100 billion won. To meet the internal rate of return (IRR) benchmark of 7%, JPI Healthcare's valuation must exceed 140 billion won for a successful equity sale.
The decline in performance is considered a variable in assessing corporate value. Last year, sales increased by 15% compared to the previous year, but operating profit decreased by 36%. If operating profit decreases, corporate value is bound to shrink.
The poor stock performance of similar sector corporations is one of the bad news. In the case of DRGEM, which manufactures and sells diagnostic X-ray equipment, it achieved an operating profit of 9.3 billion won last year, but its market capitalization is only 6.26 billion won. While simple comparisons are difficult, applying the same price-to-earnings ratio (PER) suggests that JPI Healthcare's valuation might fall below 30 billion won.
YJA, the second-largest shareholder with 49.49% equity in JPI Healthcare, is likely to be restricted from selling for a certain period immediately after the listing due to lock-up agreements. A brief spike in stock price after the listing will not be enough; a consistent rise in stock price is necessary for a successful recovery of the investment.
YJA is a management company established in 2017. It was founded by three individuals, including CEO Yoo Eun-sang, who came from Q Capital Partners in 2015. The company invested in a camera lens manufacturer, Kolen (10 billion won), a dental platform, Medipartner (14 billion won), and ready-mixed concrete manufacturer Hanla Encom (13 billion won), using a 60 billion won blind fund.