[Click eStock] "Classys Maintains Sales Growth in Off-Season Q3"
Hi Investment & Securities analyzed on the 23rd that Classys is expected to maintain its sales growth trend in the third quarter despite it being an off-season. No investment opinion or target price was provided.
Hi Investment & Securities forecasted that Classys' sales and operating profit for the third quarter will reach 46.3 billion KRW and 23.1 billion KRW, respectively, representing increases of 39.0% and 32.0% compared to the same period last year. Lee Sangheon, a researcher at Hi Investment & Securities, stated, "Despite the third quarter being an off-season, the continuous increase in consumables sales along with the growth in Voluumer sales is expected to sustain the sales growth trend. However, operating profit margin is expected to decline slightly due to costs related to the acquisition of Iruda shares and Shrink Universe licensing fees."
Furthermore, growth is expected to continue driven by increasing overseas sales. Classys' overseas sales were 23.5 billion KRW in 2017, but increased to 41.9 billion KRW in 2020, 70.2 billion KRW in 2021, and 87.5 billion KRW last year. The first half of this year also achieved 55.3 billion KRW. Researcher Lee Sangheon said, "Year by year, Classys is leading overall sales growth by increasing overseas sales in Latin American and Asian markets such as Brazil, Thailand, and Japan."
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Along with this, the positive cycle effect of profitability improvement due to increased consumables sales is expected to continue. He explained, "Classys is seeing an increase in consumables sales such as cartridges, supported by the rise in domestic and overseas sales of HIFU devices. In particular, paid cartridge sales are increasing due to sustained demand for Shrink Universe procedures." He added, "Since consumables sales maintain a high proportion of total sales, they are the driving force enabling Classys to achieve a high level of operating profit margin."
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