[Click eStock] "Amorepacific Stock Price, Influenced by KosalX"

On the 2nd, KB Securities raised the target price for Amorepacific to 170,000 KRW, citing expectations for explosive external growth and operating leverage effects from Cosrx. The investment opinion was maintained as 'Buy'.

Byung-guk Ko, a researcher at KB Securities, stated, "Sales of the Chinese subsidiary in 2024 are expected to grow by 14%, and the operating loss is projected to decrease by 64.2 billion KRW from last year to 22.8 billion KRW." He added, "Duty-free sales are also estimated to grow by 46% compared to the previous year, recovering to the 2021 level." Amorepacific's estimated duty-free sales for 2023 amount to 445 billion KRW, with a forecast of 651.6 billion KRW for this year.

Researcher Ko also noted, "The fortunate aspect is that the profitability of pure domestic channels is improving thanks to ongoing restructuring efforts." He estimated that "Cosrx's annual sales and operating profit will grow by 30% and 25%, respectively, in 2024." He added, "The future stock price direction of Amorepacific will be largely influenced by Cosrx's performance." Cosrx is a subsidiary of Amorepacific, focusing on a low-irritant skincare brand for sensitive skin. After generating sales of 204.4 billion KRW in 2022, it is estimated to have reached 466.7 billion KRW last year and is expected to achieve 606.8 billion KRW this year, showing a steep growth trend.

Meanwhile, sales and operating profit for the fourth quarter of 2023 are expected to be 942.9 billion KRW and 29 billion KRW, respectively. These figures represent decreases of 13% and 49% compared to the same period in 2022. Sales in the domestic cosmetics sector are estimated to have declined by 19%, and sales from the Chinese subsidiary by 27%. On the other hand, sales in the US and European regions grew by 36% and 43%, respectively, partially offsetting the overall sales decline. Sales in the Asian region are estimated to have remained at the same level as the previous year’s quarter.

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