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Poised for long-term market leadership

4Q25 review: Revenue misses, but OP beats

For 4Q25, Classys reported below-consensus revenue of W93.4bn (+26% YoY) and above-consensus operating profit of W51.2bn (+43% YoY; OP margin of 54.8%). By category, device revenue rose 33% YoY to W50.5bn, consumables revenue increased 18% YoY to W41.1bn, and home-care product revenue grew 16% YoY to W1.6bn. By region, domestic revenue climbed 11% YoY to W27.4bn, and overseas revenue grew 33% YoY to W65.7bn. Excluding Brazil, overseas revenue expanded 49% YoY.

Maintain Buy and raise TP to W100,000; entering a phase of sustained growth

We raise our target price on Classys to W100,000 (from W90,000), as we lifted our target EV/EBITDA from 21x to 24x (the upper end of the five-year range). With our target price implying 43.9% upside, we maintain our Buy rating. The stock is trading at a 12-month forward EV/EBITDA of 16x, in line with its three-year average but above peers (11x).

New product momentum from products launched in 2025―Volnewmer and Shurink Universe in Europe and Quadessy in Korea―remains intact. In 2026, additional launches are planned in the US (Quadessy), China (Volnewmer), and Thailand (Quadessy). Given the continued growth in consumables, we expect organic growth of over 20% YoY this year. Reflecting this along with the impact of the Brazilian distributor acquisition, we forecast 2026 revenue at W471.9bn (+40% YoY) and adjusted EBITDA at W246.9bn (+28% YoY; margin of 52.3%), marking another year of strong expansion.

In 2027, Classys plans to continue rolling out products across key regions, including Shurink Universe in the US and China and Quadessy in Europe and Brazil. In Korea, the third-generation Shurink is scheduled for release in 2027, followed by the second-generation Volnewmer in 2028. As seen following the domestic launch of the second-generation Shurink in 2022, it is likely that new product effects will be concentrated in Korea initially and then spread globally from 2028 onward.