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NORWELL, Mass. - DIH Holding US , Inc. (NASDAQ:DHAI), a leader in advanced robotic devices for rehabilitation with annual revenues of $73.5 million and 17% year-over-year growth, announced the expansion of its strategic partnership with Zahrawi Group to include Saudi Arabia. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculation. This move builds on a successful collaboration that began in 2019, extending the partnership to four countries: the United Arab Emirates, Qatar, Bahrain, and now Saudi Arabia.
The partnership aims to enhance the distribution and accessibility of DIH’s innovative rehabilitation solutions across these regions. Zahrawi Group, established in 1989, is a prominent medical devices and life science provider in the Gulf Cooperation Council, known for its expansion and contribution to the region’s healthcare sector. With a market capitalization of $28.3 million and maintaining a healthy gross profit margin of 52%, DIH shows potential for growth in this expanding market. (InvestingPro subscribers have access to 8 additional key insights about DHAI’s market position.)
Dr. Patrick Bruno, Chief Market Officer at DIH, expressed enthusiasm for the expanded partnership, emphasizing the shared commitment to excellence and innovation in healthcare. "Together, we will work to ensure that our advanced medical technologies are accessible to healthcare providers across these four countries, ultimately benefiting patients and supporting the advancement of medical care in the region," said Bruno.
Abdulrahman Ramadan, Group CEO of Zahrawi Group, echoed the sentiment, highlighting the alignment with their mission to provide smart solutions and innovative products. He is confident the collaboration will advance the rehabilitation landscape in the partnered countries.
The expanded partnership underscores both companies’ dedication to fostering innovation and delivering high-quality rehabilitation solutions. By combining DIH’s technological expertise with Zahrawi Group’s regional experience, the collaboration is poised to make a meaningful impact on rehabilitation services in the Middle East. However, investors should note that DHAI’s stock has experienced significant volatility, with InvestingPro data showing the stock trading at notable distance from its 52-week high of $5.88.
DIH specializes in advanced robotic devices that incorporate visual stimulation interactively for clinical research and intensive functional rehabilitation, targeting patients with walking impairments, reduced balance, and impaired arm and hand functions. The company has grown through mergers of global-leading niche technology providers, transforming the rehabilitation solutions industry. While the company maintains an overall "Fair" financial health score according to InvestingPro metrics, its current ratio of 0.6 suggests careful management of short-term obligations may be needed.
This expansion is based on a press release statement and should be considered with the understanding that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projected outcomes.
In other recent news, DIH Holding US, Inc. has been active on several fronts, starting with the pricing of its public offering at $0.7832 per unit. The offering comprises about 6 million units, with the intention to raise roughly $4.6 million before fees and expenses. Maxim Group LLC is managing the transaction, which is expected to close in early February 2025.
The company also released an updated investor presentation, providing current and potential investors with fresh insights into DIH’s operations and financial health. The presentation is now available on the company’s website and was disclosed in compliance with Regulation FD.
Furthermore, DIH has appointed Mr. Dietmar Dold as its new Chief Operating Officer. With over 25 years of experience in operational innovation and transformation, Mr. Dold is expected to enhance DIH’s global operations and align them with the company’s broader business goals.
These are recent developments for DIH, a company that has grown through mergers and is positioning itself as a consolidator in the traditionally fragmented and labor-intensive rehabilitation industry. However, it’s important to note that all forward-looking statements about DIH’s services and projected results are subject to risks and uncertainties, and actual outcomes may differ.
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