[Click eStock] "APR, Maximizing Synergy Between Devices and Cosmetics"

On the 25th, Daishin Securities forecasted that APR's cosmetics sales will rapidly increase due to synergies between devices and cosmetics as well as overseas marketing. They newly set a target stock price of 82,000 KRW.

Han Song-hyeop, a researcher at Daishin Securities, explained, "APR offers a premium homecare solution by integrating the 'MediCube AGE-R' beauty device with a high-functional cosmetics line," adding, "From the research and development stage, they focused on the synergy effect of simultaneous use of devices and cosmetics, securing clinical data and patents."

He continued, "By selling devices and cosmetics combined, they increase the average selling price (ASP) and gross profit margin (GPM) while inducing repeat purchases of cosmetics," and added, "They are securing a long-term customer lock-in effect."

He stated, "Cosmetics sales increased at an average annual rate of about 29%, from 161.9 billion KRW in 2021 to 338.5 billion KRW in 2024," emphasizing, "This is the result of influencer marketing on major online platforms such as TikTok Shop, Amazon, and Qoo10, as well as focused promotions aligned with shopping seasons like Black Friday and Singles' Day."

Researcher Han analyzed, "Sales are rapidly increasing not only domestically but also in overseas markets such as the United States, Japan, and Hong Kong," noting, "In the fourth quarter of last year, cosmetics sales recorded 96.9 billion KRW, a 141% increase compared to the same period the previous year." He explained, "This was due to dominating the top three positions in the toner and pad categories on Amazon US and conducting aggressive marketing during the Black Friday period."

Furthermore, he said, "Based on the PDRN extraction and production plant completed in October 2023, they will actively promote cosmetics production using high value-added ingredients (PDRN) extracted from salmon DNA starting this year," adding, "through in-house production, they can reduce costs and develop high-content premium products."

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