[Click eStock] "Classys, Potential for Additional M&A is a Key Investment Point"

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Mirae Asset Securities analyzed on the 21st that the possibility of additional mergers and acquisitions (M&A) regarding Classys is an important investment point.

Mirae Asset Securities forecasted that Classys' third-quarter sales will increase by 23% year-on-year to 59.5 billion KRW, setting a record high performance. Operating profit is expected to meet market expectations at 29.7 billion KRW, a 20% increase.

Chunghyun Kim, a researcher at Mirae Asset Securities, stated in a report on the same day, “The company's stock price has continued a rally rising more than 20% over the past three months, becoming a global leader in beauty devices,” adding, “This is because expectations for three synergies have been reflected: becoming a total solution provider through equipment diversification after the Iruda merger, regional diversification and optimization of distribution, and expansion of indications.”

Researcher Kim estimated next year's performance at 348.1 billion KRW, a 41% increase from the previous year, and operating profit at 164.3 billion KRW. He noted, “The company has not yet specifically presented synergy and financial guidance after the merger,” and “The performance was estimated by simply summing Classys and Iruda.”

Kim evaluated, “After the Iruda merger, the company presented a mid-term financial goal of achieving 1 billion USD in sales and an operating profit margin of over 50% by 2030,” adding, “To realize this vision, additional M&A is absolutely necessary.” He emphasized, “Although it is difficult to predict the timing and scale of M&A, the possibility of additional M&A is an important investment point.”

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