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Source: Classys |
[Alpha Biz= Kim Sangjin] Korea Investment & Securities raised its target price for Classys from 60,000 KRW to 67,000 KRW, citing strong growth prospects driven by expanded sales in the U.S. and Europe, as well as entry into the Chinese market. The firm maintained its "Buy" rating. Classys closed at 52,600 KRW on January 9.
In its report, Korea Investment & Securities explained, "We are raising the target price to 67,000 KRW by applying a 2024 PER of 33 times to the 12-month EPS estimate of 2,033 KRW. Expected growth from expanded sales in the U.S. and Europe in 2025, entry into the U.S. market for HIFU in 2026, expansion into China with HIFU/RF, and the launch of new HIFU products in 2027 should justify a valuation premium."
For Q4, Classys is expected to report a 56.7% year-on-year increase in revenue to 73.7 billion KRW and a 57.9% growth in operating profit to 35 billion KRW.
Korea Investment & Securities also noted, "With the merger of Iruda completed in October last year, Iruda's results will be reflected starting in Q4. However, given the mix of combined and non-combined results in the consensus, direct comparisons with the consensus may not be meaningful."
The firm added that while profit margins are likely to decline due to the inclusion of Iruda's performance, the strong U.S. dollar and reduced advertising costs relative to revenue are expected to limit the decline in operating profit margin (OPM) to 47%.
For the full year, Korea Investment & Securities forecasts a 41.3% increase in revenue to 342.1 billion KRW and a 36.5% rise in operating profit to 165.5 billion KRW, signaling strong growth.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
