[Click eStock] "AmorePacific, Q1 Earnings Surprise... Target Price Up"

Yuanta Securities analyzed on the 7th that Amorepacific recorded a first-quarter earnings surprise. The investment rating was maintained at 'Buy,' and the target stock price was raised to 200,000 KRW.

Amorepacific posted first-quarter sales of 911.5 billion KRW and an operating profit of 72.7 billion KRW. Compared to the same period last year, sales decreased by 0.2%, but operating profit increased by 12.9%. Researcher Lee Seung-eun of Yuanta Securities stated, "The operating profit exceeded the market expectation of 51 billion KRW by 43%," adding, "The cause of the earnings surprise was the reduction of losses in China and the improvement in operating profit due to a 40% growth in domestic duty-free channel sales."

Lee expected that the growth of COSRX, a North American subsidiary, and the improvement in overseas performance would be key drivers for Amorepacific's stock price increase. COSRX will be consolidated in the financial statements starting from the second quarter.

He explained, "We revised COSRX's annual sales forecast from 632.7 billion KRW to 756.3 billion KRW," adding, "COSRX maintains a top 5 position in the cosmetics category on Amazon, which is estimated to account for 50% of U.S. sales, and it appears that the local purchase price in North America is rising."

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