[Click eStock] "AmorePacific Undergoes Organizational Restructuring... Expecting Performance Turnaround"

NH Investment & Securities Issues 'Buy' Rating and Sets Target Price at 240,000 Won... Closing Price on 8th at 196,000 Won

[Asia Economy Reporter Kum Boryeong] An analysis has emerged expecting a turnaround in Amorepacific's performance.

On the 9th, NH Investment & Securities gave Amorepacific a 'Buy' rating with a target price of 240,000 KRW, up from the previous 220,000 KRW. The closing price on the 8th was 196,000 KRW.

Researcher Jomi Jin of NH Investment & Securities stated, "The effects of offline restructuring in China and domestically are becoming visible, and performance is expected to turn around through enhanced brand competitiveness. The internal organizational restructuring and personnel changes also demonstrate a commitment to change and innovation, which is positive. The bottom of the performance has already been confirmed, and next year, focusing capabilities on digital channels and luxury products is expected to show a transformed image. Although one-time costs are inevitable during the restructuring process, causing short-term valuation to be high, when compared to past turnaround cases like Shiseido and the current valuation levels of global peers, it is not considered excessive."

Amorepacific is showing an overall changed appearance. To actively respond to the rapidly changing environment, it has carried out organizational restructuring and plans to enhance brand competitiveness by separating its core brands Sulwhasoo and Laneige into independent units. Researcher Cho said, "The organization has been restructured to grant independence and authority across all areas from product sourcing to marketing and sales, allowing a closer response to market conditions and accelerating independent growth. Personnel appointments to enhance digital capabilities in China will also be carried out."

The transition to digital will continue next year as well. In particular, in China, there are plans to reduce Innisfree stores by an additional 170 locations. This is expected to improve cost structure and profitability.

This content was produced with the assistance of AI translation services.