[E-Daily Reporter Hyera Lee ] On the 16th, KIWOOM Securities forecast that CLASSYS Inc.(214150)“will report second-quarter earnings below market expectations as domestic equipment sales fall short of projections.” The firm lowered its target price by 19.4% from 72,000 won to 58,000 won, while expressing optimism regarding the company’s medium- to long-term growth strategy driven by overseas expansion and the appointment of a new CEO.

Shin Min-soo, an analyst at KIWOOM Securities, stated, “Second-quarter earnings are expected to fall slightly short of forecasts,” adding, “While overseas operations, such as those in Brazil, are performing well, we believe that even with the launch of the improved ‘QuadSay’ model, the domestic market has not been able to fully fill the gap left by the ‘Ripot’ equipment, which drove last year’s growth.”
KIWOOM Securities estimated that CLASSYS Inc.’s second-quarter revenue would be 108.4 billion won and operating profit 47.9 billion won, projecting that these figures would fall short of forecasts by 7.1% and 12.9%, respectively.
Analyst Shin highlighted the disparity in growth trends between the domestic and overseas markets. He noted, “In the domestic market, sales of ‘Shrink Universe’ and ‘Volnume’ have continued steadily, but growth has been moderate,” adding, “In contrast, in Brazil, performance has entered a normalization phase as the company maintained local inventory at a certain level, thereby reducing the impact of unrealized gains and losses related to inventory.”
Furthermore, he noted that while sales of “EVERESSE” and “Quadsey” are underway in the U.S., given the nature of the market, these should be viewed as long-term growth drivers.
Research Analyst Shin stated, “For valuation to recover, data demonstrating the company’s own strengths—such as expanded performance in the domestic market and strong overseas exports—must come first.”
He added, “Vice President Yoon Jun-oh, who was in charge of major mergers and acquisitions (M&A) at SamsungElectronics, has been appointed as Chief Executive Officer,” noting, “We expect him to lead management strategies following the Brazil subsidiary and drive inorganic growth, while resolving various financial challenges.”