[Click eStock] "Classys Enters Phase of Paid Conversion for Consumables... Target Price Up"

On the 18th, Korea Investment & Securities analyzed that Classys is approaching the point of transitioning from equipment sales to paid consumables. The investment opinion was maintained as 'Buy,' and the target price was raised to 46,000 KRW.

Korea Investment & Securities forecasted that Classys' sales and operating profit for the fourth quarter of last year would reach 49.5 billion KRW and 24.6 billion KRW, respectively, representing increases of 22.3% and 26.8% compared to the same period last year. Si-on Kang, a researcher at Korea Investment & Securities, explained, "Although expectations for performance increased due to strong results in the third quarter of last year and seasonal factors in the fourth quarter, sales in December declined, so the quarter-on-quarter growth in scale is expected to be only 2.6%."

However, long-term growth potential is expected to increase. He emphasized, "Consumables sales are projected at 22.6 billion KRW, which accounts for about 45.7% of total sales," adding, "As the transition to paid consumables approaches, quarterly growth trends are expected."

In particular, the distribution network and brand value established through HIFU are expected to be further highlighted. He stated, "Despite the cost expansion trend among aesthetic medical device companies, they have maintained a selling and administrative expense ratio of 26-28% over the past five years, securing profit stability," and added, "As the domestic market enters a mature stage and the importance of exports increases, the distribution network and brand value built through HIFU will be emphasized."

He also noted, "This year, Bolnumar exports will be in full swing, centered on Brazil and Thailand, where the cumulative number of HIFU installations is understood to be over 3,000 and 1,000 units, respectively," emphasizing, "While easier RF market penetration compared to competitors is expected, the acceleration of the transition to paid consumables for Shrink Universe and Bolnumar is also positive."