[Featured Stock] 'Q3 Surprise Earnings' Amorepacific Up 4.89%

Amorepacific's stock price is on the rise after announcing surprising earnings for the third quarter of this year.

As of 9:27 a.m. on the 1st, Amorepacific was trading at 122,300 KRW, up 5,700 KRW (4.89%) from the previous trading day.

In the third quarter, Amorepacific reported consolidated sales of 977.2 billion KRW and operating profit of 65.2 billion KRW, marking increases of 9.9% and 277.7% respectively compared to the same period last year. The market consensus forecast was sales of 981 billion KRW and operating profit of 42.9 billion KRW, so the operating profit far exceeded expectations. This was thanks to the overseas market and daily beauty segment turning profitable.

On the day, Hyunjin Park, a researcher at Shinhan Investment Corp., said, "The earnings were a surprising beat. The costs related to restructuring in China were smaller than the market expected," adding, "Additional economic stimulus measures in China are expected to be announced this month, which, combined with the effects of business adjustments in China, will increase volatility in the stock price."

However, the slowdown in growth of the subsidiary COSRX was seen as a disappointment. Jonghyun Park, a researcher at Daol Investment & Securities, stated, "It was encouraging that the deficit in China was reduced faster than market expectations, but the slowdown in COSRX's growth offset that effect."