[Click eStock] "Classys, Expanding Consumables Sales Cycle This Year"

Investment Rating 'Buy' and Target Price Maintained at 45,000 Won

NH Investment & Securities analyzed on the 8th that Classys will begin an expendables expansion cycle this year. The investment opinion 'Buy' and the target price of 45,000 KRW were maintained.

NH Investment & Securities forecasted that Classys will record sales of 48.8 billion KRW and operating profit of 23.1 billion KRW in the fourth quarter of last year, representing increases of 21% and 19% respectively compared to the same period last year. Researcher Byung-guk Park of NH Securities said, "In December last year, there were advertising expenses at the level of the second quarter due to the dealership season-off and domestic online and offline events, but sales performance in October and November was still good, which aligns with the existing estimates."

NH Investment & Securities expects Classys to achieve sales of 224.1 billion KRW and operating profit of 113.6 billion KRW this year, representing increases of 23% and 25% respectively compared to the previous year. He said, "Now we need to pay attention to the overseas expendables expansion cycle as well," adding, "Considering the timing of free cartridge provision at the equipment launch and the timing of paid orders, it takes three months domestically and one year overseas due to the high proportion of dealerships." He emphasized, "Since it has been one year since the launch of Universe in Brazil, the expendables expansion cycle will start in 2024."

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