[Click eStock] "Asterasys, Overhang Concern Resolved"

Buy Rating and Target Price Maintained
Overhang Issue Resolved, Additional Sell-off Unlikely

DS Investment & Securities maintained a 'Buy' rating and a target price of 12,000 KRW for Asterasys on the 10th, stating that the overhang (potential sell-off volume) issue has been resolved.

Researcher Jin-Hyung Kim of DS Investment & Securities evaluated this, adding, "It has been identified that the majority of the one-month lock-up shares, whose lock-up period ended on the 24th of last month, are held by stakeholders related to Asterasys, so the possibility of additional sell-off volume being released in the future is low."

Kim also anticipated high growth for Asterasys's monopolar RF product 'CoolPhase,' launched last year. He explained, "CoolPhase is growing rapidly as expected. The equipment diffusion speed three months after the launch of CoolPhase is about three times that of the existing equipment, Liftera," adding, "As it quickly establishes itself in the market, synergy effects with Liftera are also expected." CoolPhase is recording strong performance in both South Korea and Brazil. The securities firm forecasted that cumulative sales in South Korea and Brazil would each reach 1,000 units this year. Additionally, further certifications are underway in Taiwan, China, and Mexico.

Accordingly, Asterasys's RF equipment and consumables sales this year are projected to increase by 264.9% year-on-year to 23 billion KRW. The company showed significant growth last year, with sales (28.8 billion KRW) and operating profit (6.7 billion KRW) rising 64.8% and 328.6%, respectively, compared to the previous year.