Global medical aesthetics leader Classys (214150) is accelerating its expansion in the US, the world's largest aesthetic medical market.
At a recent global investment conference, the company drew intense investor attention by presenting a specific North American revenue share target and a new product lineup.
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Key Takeaways
- **Full-Scale US Market Push**: Participating in the Jefferies Healthcare Conference in the US, Classys announced a long-term roadmap to raise its North American revenue share to 15% of its total sales by 2030.
- **Portfolio Diversification**: Following the monopolar radiofrequency (MRF) device 'Everest (Volnewmer)', Classys successfully launched the microneedle RF (MNRF) device 'Quadsey', with US approval for its high-intensity focused ultrasound (HIFU) device expected next year.
- **Financial Structure Transition**: The company is going through a transitional phase following the acquisition of its Brazilian distributor and a shift to a direct sales model, aiming to protect medium-to-long-term profitability and improve cash collection rates.
Current Market Summary
Today, the domestic stock market experienced sharp volatility driven by a semiconductor shock from the US and foreign selling pressure.
The KOSDAQ index fell compared to the previous trading day, barely clinging to the 1,002.44 level at the close.
The USD/KRW exchange rate surged to 1,539.80 KRW, increasing the burden of a strong dollar, while the KOSPI closed at 8,160.59 and the NASDAQ stood at 26,830.96.
According to the Daily Stock Fear & Greed Index, the KOSPI Fear & Greed Index currently stands at 49.8 (Neutral), down slightly from last month's Greed level (66.5).
The NASDAQ Fear & Greed Index also registered at 54.7 (Neutral), reflecting a general wait-and-see attitude across asset markets.
Amid this macroeconomic volatility, Classys shares closed at 42,950 KRW, down 1.26% from the previous trading day.
Despite the short-term stock price correction, Classys participated as a presenting company at the Jefferies Healthcare Conference in the US to formalize its mid-to-long-term North American penetration strategy.
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Financial Analysis
For the first quarter of this year, Classys recorded consolidated revenue of 87.2 billion KRW (up 13% year-on-year) and operating profit of 37.2 billion KRW (down 4% year-on-year).
Both revenue and operating profit fell short of market consensus. This was primarily due to the temporary elimination of unrealized gains following the completion of the acquisition of Brazilian distributor 'MedSystems' in March.
In the process of transitioning from an indirect sales model to a direct sales model, the company temporarily faced higher cost ratios from initial inventory adjustments and an increased burden of SG&A expenses.
On the balance sheet, total accounts receivable surged to 108.6 billion KRW, of which Brazilian receivables alone accounted for 69.6 billion KRW, leaving lingering concerns over the speed of cash collection.
However, once the direct sales network enters its normal trajectory in the second half of the year, the cost-saving benefits from eliminating intermediary distribution fees are expected to materialize.
| Category | FY2024 (Actual) | FY2025 (Actual) | FY2026 Forecast (F) |
|---|---|---|---|
| **Revenue (Billion KRW)** | 242.9 | 336.8 | 453.9 ~ 490.0 |
| **Operating Profit (Billion KRW)** | 122.4 | 170.6 | 220.8 ~ 225.4 |
| **Operating Margin (%)** | 50.4% | 50.7% | 48.2% ~ 48.6% |
| **Key US Devices** | - | Volnewmer (Everest) Launch | Quadsey Launch |
(Source: Compiled based on Classys disclosures and forecasts from Kiwoom Securities and Kyobo Securities)
Valuation
Currently, Classys' 12-month forward PER has adjusted to around 18x to 22x, significantly easing the valuation burden compared to its historical peaks.
Today's closing price of 42,950 KRW is close to its 52-week low (42,100 KRW), suggesting that recent earnings concerns and supply-demand issues have been largely priced in.
If revenue from the North American market—a long-term growth driver—materializes and the recurring revenue structure for consumables settles, a multiple re-rating scenario remains highly viable.
Expert and Institutional Analysis
Security analysts note that while the company is experiencing a short-term earnings gap, its expansion into the world's top three aesthetic medical device markets (US, Europe, and China) is progressing without disruption.
In the US market, Classys exceeded a cumulative installation base of 300 MRF devices as of 2025 through its local partner, Cartessa Aesthetics.
With the addition of 'Quadsey' (MNRF) launched in March 2026, the company achieved combined sales of more than 100 units of both RF devices in the first quarter of this year alone.
Experts project that if 'Repit', a pigment treatment laser slated for US approval within the year, and 'Ultraformer MPT', a HIFU device with approval expectations for next year, are added, the company will enjoy a genuine full-lineup synergy.
Although some securities firms lowered their target prices to the 70,000 to 80,000 KRW range to reflect short-term expenditures and concerns over Brazilian accounts receivable, they consistently maintained their 'BUY' ratings.
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Risk Factors
The most immediate risk is the delay in collecting receivables in the Brazilian market and the potential slowdown in cash flow.
Additionally, occasional block deal concerns from the largest shareholder, Bain Capital, act as a supply-and-demand obstacle, capping upward stock price movements.
Finally, potential delays in approvals from global regulatory bodies (such as Volnewmer's Chinese approval within the year and the US HIFU approval schedule) also serve as variables that could slow growth momentum.
Investment Outlook
Classys is currently undergoing a transition, shifting away from indirect-sales-led growth to expand its local direct sales network and evolve into a comprehensive platform provider in the US.
Short-term financial volatility and declining margins are close to anticipated investment phases, and overseas performance, which will be fully reflected starting in the second half of the year, is expected to determine the company's long-term direction.
Investors should closely monitor the local device installation rate in the US and the rebound timing of highly profitable consumables revenue.
Investor Checklist Q&A
Q1. What is Classys' flagship product lineup in the US market?
A1. Currently, the two main pillars are the RF device 'Everest (Volnewmer)' and the microneedle RF 'Quadsey' launched this March. The pigment treatment laser 'Repit' is planned to be added within the year.
Q2. What is the long-term target for the US revenue share?
A2. The company aims to raise the share of North American revenue to 15% of its total sales by 2030 by combining equipment expansion and recurring consumables revenue in the region.
Q3. Why did operating profit slow down in the recent first quarter?
A3. The decline in the gross profit margin (GPM) was primarily due to the temporary elimination of unrealized gains from initial inventory upon consolidating MedSystems in Brazil, which was acquired in March.
Q4. Does the 69.6 billion KRW in Brazilian accounts receivable pose a significant threat to earnings?
A4. While it causes short-term supply-demand anxiety, the transition to a direct sales system allows Classys to directly manage billing and collection cycles, which may ultimately strengthen control in the long run.
Q5. What stock price momentum can be expected in the second half of 2026?
A5. Key turning points will include the cumulative installation base of new products in the US market, along with visibility regarding the NMPA approval for 'Volnewmer' in China.