East Coast Research Report – Compumedics Limited (ASX: CMP)

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Compumedics Limited (ASX: CMP) –
A Global MedTech Leader Transforming Sleep & Brain Health

We initiate coverage on Compumedics (ASX: CMP), a global MedTech innovator in sleep and neurological diagnostics, with a 12-month fair valuation of A$0.67 — representing a 108% upside from the current share price of A$0.32. We expect the following key factors to drive Compumedics’ growth and enhance shareholder value:

1. US Market Expansion of Somfit™ and Falcon™ HSTs:
Compumedics has secured FDA clearance for both its Somfit™ and Falcon™ Home Sleep Test devices. With a target addressable market of up to 4 million studies per year in the US alone, this could generate A$180M+ in new SaaS revenues annually. Early traction in Australia, where Compumedics commands an estimated 75% of the pharmacy-based HST market, indicates strong global rollout potential.

2. Breakthrough Success of Orion LifeSpan™ MEG:
The Orion MEG brain imaging system has received nearly A$20M in orders to date, with its first installation at China’s Tianjin Normal University validating the technology’s clinical excellence. Follow-on orders are already flowing, and even modest market share gains in the fast-growing MEG market could add A$10M+ in annual revenue.

3. Compelling Valuation & Global Distribution Footprint:
Our DCF model values CMP at A$0.50 (base case) to A$0.83 (bull case) per share. Despite being a global category leader, Compumedics trades at a deep discount to MedTech peers (EV/Revenue 1.1x vs 4.5x sector median), with a strong international sales network across the US, EU, Asia-Pacific, and over 100 distributors worldwide.

4. AI-Driven Product Pipeline & Strong Revenue Momentum:
Beyond sleep and brain health, CMP’s DWL® unit is developing a robotic AI TCD system for real-time, non-invasive brain blood-flow monitoring. This, along with a 50% YoY increase in SaaS revenues from Somfit™ and Nexus in 1H FY25, showcases the company’s innovation engine and growth trajectory.

With nearly 40 years of experience, A$800M in historical revenue, and award-winning innovation, Compumedics is uniquely positioned to lead the next generation of neuro-diagnostic care.

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For further information please contact:

Dr David Burton
Executive Chairman, CEO Executive Director
Compumedics Limited
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399

David Lawson
Chief Financial Officer
Compumedics Limited
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399

Authorised for lodgement by Compumedics Limited’s Board of Directors

About Compumedics Limited

Compumedics Limited [ASX: CMP] is a medical device company involved in the development, manufacture and commercialisation of diagnostics technology for the sleep, brain and ultrasonic blood-flow monitoring applications. The Company owns US based Neuroscan and Germany based DWL Elektronishe GmbH. In conjunction with these two subsidiaries, Compumedics has a broad international reach, including the Americas, Australia and Asia Pacific, Europe and the Middle East.

Executive Chairman Dr. David Burton founded Compumedics in 1987. In the same year the Company successfully designed and installed the first Australian, fully computerised sleep clinic at Epworth Hospital in Melbourne. Following this early success, Compumedics focused on the development of products that sold into the growing international sleep clinic and home monitoring markets.

Compumedics listed on the Australian Securities Exchange in 2000. Over the years, Compumedics has received numerous awards, including Australia’s Exporter of the Year, and has been recognised as a Top 100 Innovator by both German and Australian governments.