Korea Investment & Securities noted on the 13th that CLASSYS's first quarter earnings, expected to be a yearly low, exceeded expectations. The target price is 73,000 won, and the investment opinion remains "buy."
CLASSYS's first quarter revenue was 77.1 billion won, and operating profit was 38.8 billion won, which represents increases of 53.1% and 46.3%, respectively, compared to the same period last year. In terms of individual performance, CLASSYS recorded a revenue of 65.5 billion won, and Iluda recorded 11.6 billion won, following last year's merger.
CLASSYS's strong performance in the first quarter was led by consumable sales. The combined consumable sales of CLASSYS and Iluda reached 40.5 billion won, marking a 53.1% increase compared to the same period last year. The proportion of consumables in overall sales increased from 47% in the fourth quarter of last year to 53% in the first quarter of this year.
Kang Si-on, a researcher at Korea Investment & Securities, analyzed, "The acceleration of the paid conversion of consumables will increase their contribution to sales, and in addition, Iluda's production efficiency and cost reduction will likely lead to sustained improvements in profit margins."
From the second quarter onwards, a stair-step increase in quarterly earnings is also expected. In the second quarter, it is projected that the medical device regulations (CE MDR) certification for high-intensity focused ultrasound (HIFU) and radiofrequency (RF) will be obtained in Europe. It is anticipated to contribute to sales beginning in the third quarter.
Researcher Kang noted, "As sales expand in advanced markets, the sales of consumables are expected to accelerate due to the paid conversion of consumables, and the growth potential for the remaining quarters is likely to be enhanced."