[Click eStock] "Classys, All Divisions Growing Together"

Consensus Expected to Exceed Q2 Earnings Estimates
Daishin Securities "Classys Target Price Raised from 17,000 KRW to 25,000 KRW"

[Asia Economy Reporter Gong Byung-sun] Classys is expected to post second-quarter earnings that exceed market consensus. The launch of new products is anticipated to be a growth driver in the second half of the year.

On the 15th, Daishin Securities estimated Classys' second-quarter sales to increase by 80.9% year-on-year to 26.4 billion KRW, and operating profit to rise by 124.3% to 14.3 billion KRW. These figures surpass the consensus estimates of 24 billion KRW and 13.3 billion KRW by 10% and 7.5%, respectively.

All sectors are expected to show growth. Daishin Securities projected sales in the medical equipment brand Classys segment to increase by 96.2% year-on-year to 11.4 billion KRW, the lifting patch brand Cluderm segment to grow by 278.4% to 2.8 billion KRW, and the consumables segment to rise by 57% to 11.9 billion KRW.

Exports appear to have rebounded since April. Brazil, which had the highest export share, saw export revenue drop by 33.4% year-on-year to approximately 200,000 USD (2.3 billion KRW) in the first quarter due to a resurgence of COVID-19, but it has since recovered to around 600,000 USD. Export data from Gangnam-gu targeting major countries such as Australia, Russia, Japan, and China has also shown a steep upward trend since early this year. In fact, the aesthetic export revenue from Gangnam-gu, where Classys is located, is expected to increase by 42% and 337% year-on-year in the equipment and consumables segments, respectively, in the second quarter.

Additional growth drivers remain. Researcher Lee Saerom of Daishin Securities stated, “Following the launch of a new high-intensity focused ultrasound (HIFU) laser product in the second half, equipment sales will recover significantly. Consumables sales, which are linked to procedure demand, will also show solid trends in both exports and domestic markets as face-to-face activities normalize.”

Accordingly, Daishin Securities maintained a ‘Buy’ rating on Classys. The target price was raised from 17,000 KRW to 25,000 KRW. The closing price on the previous day was 20,350 KRW.

This content was produced with the assistance of AI translation services.