Korea Investment & Securities evaluated on the 15th that CLASSYS is expected to see stepwise growth every quarter starting from the first quarter of this year. The target price has been raised 9% from the previous 67,000 won to 73,000 won, and the investment opinion remains "buy."
Kang Si-on, a researcher at Korea Investment & Securities, noted that "the full-scale expansion into the U.S. and Europe this year, and the entry into China next year are expected to sequentially unfold on the growth roadmap," adding, "the U.S. sales ratio is small, so the impact of tariffs is limited, and the exchange rate environment is also positive."
CLASSYS's consolidated sales in the first quarter of this year are expected to be 74.6 billion won, which indicates a 48.1% growth compared to the same period last year. Operating profit is also expected to show significant growth of 37.8%, totaling 36.5 billion won during the same period. Typically, the first quarter is the slowest period for orders due to the impacts of budgetary and policy formulation by distribution companies. In fact, the customs export data shows that sales from January to March have sequentially increased. Main export markets Brazil and Thailand grew by 21% and 65%, respectively, while Japan saw a 1% decline.
CLASSYS is expected to accelerate its growth as European sales will be added in the second half of this year. The company's main products, high-intensity focused ultrasound (HIFU) and radiofrequency (RF) equipment, are anticipated to receive approval in the second quarter. Despite a 9% decrease in projected sales due to the bankruptcy protection filing of the U.S. distributor acquired last year, the overall impact on the performance is expected to be limited as the initial projections for U.S. sales were conservative.