Fundamental Analyses, Contrarian Cashflows

Contrarian Cashflows

Fundamental Analyses

The purpose of Contrarian Cashflows is to document my investment research and share it with everyone who is interested in value investing. My long term aspiration for Contrarian Cashflows is to become a platform for professional investors and serious amateurs where they can get inspiration and discuss investing-related topics.
I plan to publish one company deep dive per month that is guided by my investment approach. All information I use for my write-ups is publicly available and most of the time directly sourced from public filings issued by the respective companies. To guarantee maximum transparency, for every post I provide a list of all used sources in the resources section.
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Thematic (Sector/Industry)

<ul>
<li>Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.</li>
<li>Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.</li>
<li>If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!</li>
</ul>


Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.
Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.
If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!


Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<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 solid performance in 2Q23, with revenue and operating profit growing 40% and 52%, YoY, respectively, mainly driven by consumables sales in both domestic and overseas markets.  </li>
<li>Despite increase in advertising and R&amp;D expenses, operating profit margin expanded 370 basis points to 50.4%. Net profit increased 34% YoY to KRW18.6 billion.</li>
<li>With 1H23 revenue of KRW84.9 billion, Classys is on track to meet 2023 revenue guidance of KRW170 billion, representing year-over-year increase of 20%.</li>
</ul>



Classys (214150 KS) reported solid performance in 2Q23, with revenue and operating profit growing 40% and 52%, YoY, respectively, mainly driven by consumables sales in both domestic and overseas markets.  
Despite increase in advertising and R&amp;D expenses, operating profit margin expanded 370 basis points to 50.4%. Net profit increased 34% YoY to KRW18.6 billion.
With 1H23 revenue of KRW84.9 billion, Classys is on track to meet 2023 revenue guidance of KRW170 billion, representing year-over-year increase of 20%.


Classys (214150 KS): Beautiful Growth Story Continues; No Sign of Slowing Down

<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 solid performance in 1Q23, with double-digit revenue growth, driven by expansion of domestic consumables sales for Shrink Universe and growth in overseas device and consumables sales.</li>
<li>Operating profit increased 19% YoY to KRW 19.9 billion, leading to 380 basis point margin expansion to 51%. Net profit increased 46% YoY to KRW 18.8 billion.</li>
<li>Classys continues to strengthen its competitiveness through product line and geography expansion. The company has reiterated 2023 revenue guidance of KRW170 billion, representing year-over-year increase of 20%.</li>
</ul>



Classys (214150 KS) reported solid performance in 1Q23, with double-digit revenue growth, driven by expansion of domestic consumables sales for Shrink Universe and growth in overseas device and consumables sales.
Operating profit increased 19% YoY to KRW 19.9 billion, leading to 380 basis point margin expansion to 51%. Net profit increased 46% YoY to KRW 18.8 billion.
Classys continues to strengthen its competitiveness through product line and geography expansion. The company has reiterated 2023 revenue guidance of KRW170 billion, representing year-over-year increase of 20%.


Classys (214150 KS): Strong 1Q23 Result Lifted by Overseas Performance and Consumables Sales

<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

United States

InMode Ltd. develops medical devices. The Company manufactures and markets platforms that harness novel radio-frequency based technology for both the patients and the practitioners. InMode serves customers worldwide.

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Inmode (INMD US)

Monday Delight: 26/05/25

Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help...

Contrarian Cashflows

Classys (214150 KS): Beautiful Growth Story Continues; No Sign of Slowing Down

Classys reported strong 2Q23 performance, with revenue and operating profit growing 40% and 52% YoY, driven by consumables sales. The company...

Tina Banerjee

Classys (214150 KS): Strong 1Q23 Result Lifted by Overseas Performance and Consumables Sales

Since publishing this insight, Classys shares gained 26%. Investors can book partial profit and hold core position, as more upside is seen, due to...

Tina Banerjee

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Monday Delight: 26/05/25

Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help...

Contrarian Cashflows

Classys (214150 KS): Beautiful Growth Story Continues; No Sign of Slowing Down

​Classys reported strong 2Q23 performance, with revenue and operating profit growing 40% and 52% YoY, driven by consumables sales. The company...

Tina Banerjee

Classys (214150 KS): Strong 1Q23 Result Lifted by Overseas Performance and Consumables Sales

Since publishing this insight, Classys shares gained 26%. Investors can book partial profit and hold core position, as more upside is seen, due to...

Tina Banerjee

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

Classys reported strong 2Q23 performance, with revenue and operating profit growing 40% and 52% YoY, driven by consumables sales. The company...