Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in April 2023, among which 4 are in KOSPI and 48 are in KOSDAQ.</li>
<li>These 52 stocks on average could be subject to further selling pressures in April and could underperform relative to the market. </li>
<li>Among these 52 stocks, the top 5 market cap stocks include Ssangyong Motor (003620 KS), Classys (214150 KS), Jeio (418550 KS), EN Plus (074610 KS), and Nano TIM (417010 KS).</li>
</ul>


We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in April 2023, among which 4 are in KOSPI and 48 are in KOSDAQ.
These 52 stocks on average could be subject to further selling pressures in April and could underperform relative to the market. 
Among these 52 stocks, the top 5 market cap stocks include Ssangyong Motor (003620 KS), Classys (214150 KS), Jeio (418550 KS), EN Plus (074610 KS), and Nano TIM (417010 KS).


End of Mandatory Lock-Up Periods for 52 Companies in Korea in April 2023

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lutronic-corp" target="_blank" data-smartkarma-citation="entities:2250:1" rel="noopener">Lutronic Corp (085370 KS)</a> recorded its highest ever revenue and operating profit in 2022, driven by strong performance of overseas business, which contributed 88% of revenue and grew 62% YoY.</li>
<li>Overall, business has recovered with the reopening of the dermatology clinics and resumption of elective procedures globally. In addition to product sales, sales of consumables and services are steadily increasing.</li>
<li>Despite stellar performance in 2022, ongoing lawsuit against U.S.-based competitor remains an overhang on Lutronic’s overseas growth aspirations, especially in the U.S.</li>
</ul>



Lutronic Corp (085370 KS) recorded its highest ever revenue and operating profit in 2022, driven by strong performance of overseas business, which contributed 88% of revenue and grew 62% YoY.
Overall, business has recovered with the reopening of the dermatology clinics and resumption of elective procedures globally. In addition to product sales, sales of consumables and services are steadily increasing.
Despite stellar performance in 2022, ongoing lawsuit against U.S.-based competitor remains an overhang on Lutronic’s overseas growth aspirations, especially in the U.S.


Lutronic Corp (085370 KS): Record-High Performance in 2022; Litigation May Limit Upside Potential

<ul>
<li>
<a href="https://www.smartkarma.com/entities/inmode-ltd" target="_blank" data-smartkarma-citation="entities:29005:1" rel="noopener">InMode Ltd (INMD US)</a> reported record-high quarterly revenue of $134M in Q4, up 21% YoY, mainly driven by the strong demand for its innovative, energy-based, minimally invasive product platforms. </li>
<li>However, quarterly revenue growth is deteriorating since Q3 2021. Q4 2022 revenue growth of 21% is the lowest in last two years or eight quarters.</li>
<li>Demand for aesthetic procedures in the U.S., which is the core market for InMode is expected to deteriorate in next 6–12 months due to macroeconomic headwind.</li>
</ul>



InMode Ltd (INMD US) reported record-high quarterly revenue of $134M in Q4, up 21% YoY, mainly driven by the strong demand for its innovative, energy-based, minimally invasive product platforms. 
However, quarterly revenue growth is deteriorating since Q3 2021. Q4 2022 revenue growth of 21% is the lowest in last two years or eight quarters.
Demand for aesthetic procedures in the U.S., which is the core market for InMode is expected to deteriorate in next 6–12 months due to macroeconomic headwind.


InMode Ltd (INMD US): Decelerating Growth & Unfavorable Macro Environment Are Major Concerns

<ul>
<li>
<a href="https://www.smartkarma.com/entities/classys" target="_blank" data-smartkarma-citation="entities:29688:1" rel="noopener">Classys (214150 KS)</a> reported strong performance in 2022, with highest ever revenue and profit, driven by increased sales of equipment and consumables due to increased global awareness of major products.</li>
<li>Revenue from export recorded a CAGR of 30% during 2017–2022, mainly driven by strong growth in Brazil. Classys launched Shrink Universe in Korea and Ultraformer MPT in global market.</li>
<li>For 2023, Classys has guided for revenue of KRW170B (+20% YoY), driven by Shrink Universe's expansion into the global market, full-fledged domestic sales of Volumemers, and increasing volume of consumables.</li>
</ul>



Classys (214150 KS) reported strong performance in 2022, with highest ever revenue and profit, driven by increased sales of equipment and consumables due to increased global awareness of major products.
Revenue from export recorded a CAGR of 30% during 2017–2022, mainly driven by strong growth in Brazil. Classys launched Shrink Universe in Korea and Ultraformer MPT in global market.
For 2023, Classys has guided for revenue of KRW170B (+20% YoY), driven by Shrink Universe's expansion into the global market, full-fledged domestic sales of Volumemers, and increasing volume of consumables.


Classys (214150 KS): Record-High Sales and Profit in 2022; Geography Expansion to Accelerate Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/classys" target="_blank" data-smartkarma-citation="entities:29688:1" rel="noopener">Classys (214150 KS)</a> has started selling Volnewmer from the end of October 2022. With a safe and comfortable treatment experience, Volnewmer will become another strong growth engine.</li>
<li>The ratio of consumables sales to total sales is gradually increasing from 33% in Q1 2022 and 37% in Q2 2022 to 46% in Q3 2022, leading to improved profitability.</li>
<li>Classys recorded 30%+ revenue growth and margin improvement in Q3, with the cumulative sales in Q3 of this year exceeded 2021 annual sales, which was already the largest.</li>
</ul>



Classys (214150 KS) has started selling Volnewmer from the end of October 2022. With a safe and comfortable treatment experience, Volnewmer will become another strong growth engine.
The ratio of consumables sales to total sales is gradually increasing from 33% in Q1 2022 and 37% in Q2 2022 to 46% in Q3 2022, leading to improved profitability.
Classys recorded 30%+ revenue growth and margin improvement in Q3, with the cumulative sales in Q3 of this year exceeded 2021 annual sales, which was already the largest.


Classys (214150 KS): Will Continue To Remain On a Consistent Growth Path Through New Launches

South Korea

Classys Inc. operates as a medical equipment manufacturing company. The Company develops and sells non surgical painless fat reduction instruments, fat freezing fat reduction instruments, and other products. Classys markets its products worldwide.

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Classys (214150 KS)

End of Mandatory Lock-Up Periods for 52 Companies in Korea in April 2023

We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in April 2023, among which 4 are in KOSPI and 48 are in KOSDAQ.

Douglas Kim

Lutronic Corp (085370 KS): Record-High Performance in 2022; Litigation May Limit Upside Potential

Lutronic recorded its highest ever revenue and operating profit in 2022, driven by strong performance of overseas business. However, litigation...

Tina Banerjee

InMode Ltd (INMD US): Decelerating Growth & Unfavorable Macro Environment Are Major Concerns

InMode’s Q4 sales growth of 21% is the lowest in last 2 years. For 2023, InMode guided for 16–17% sales growth, slower than 27% in 2022. Demand is...

Tina Banerjee