[Click eStock] Amorepacific, Earnings Expectations Boost 'Target Price Up 13%'

[Asia Economy Reporter Lee Seon-ae] Daishin Securities announced on the 4th that it is raising the target price for Amorepacific by 13% to 270,000 KRW due to the possibility of upward revision in earnings.

Amorepacific's sales in the fourth quarter of 2020 were 1.1569 trillion KRW (-13% yoy, +6% qoq), and an operating loss of 9.2 billion KRW (turning to a deficit), which met the downwardly revised market expectations. This year, China sales are expected to grow by +8%, operating profit margin 6~7%, duty-free channel sales +17%, and Korean cosmetics operating profit margin 11%. The strong performance of Sulwhasoo, expansion of online sales of premium brands, flexible domestic duty-free policies, and high growth of Hainan duty-free stores in China provide grounds for the possibility of upward revision of earnings estimates.

Han Yoo-jung, a researcher at Daishin Securities, explained, "We are raising the target price considering the fourth-quarter earnings that met expectations and the future earnings direction."

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