[Click e-Stock] "Amorepacific, an Indie Brand with Large-Scale Infrastructure"

On August 4, Sangsangin Securities selected Amorepacific as its top pick in the cosmetics sector, stating that the company has the advantage of utilizing various brand strategies based on its large-scale infrastructure, as the global cosmetics market is being reorganized around indie brands in the post-COVID-19 endemic era. The investment opinion was maintained at 'Buy', with a target price of 185,000 won.

In the second quarter, Amorepacific recorded consolidated sales of 1.005 trillion won (up 11.1% year-on-year) and operating profit of 73.7 billion won (up 1,673.4%). In particular, domestic cosmetics succeeded in a turnaround as both new growth channels and traditional domestic channels grew evenly. Overseas cosmetics also saw a 605% increase in operating profit, as not only the Americas and Europe, which continue to grow under the rebalancing strategy, but also performance in China improved.

Kim Hyemi, a researcher at Sangsangin Securities, explained, "In terms of profitability, profit decreased due to increased labor costs such as performance bonuses at Western subsidiaries, but overall profitability improved as the turnaround in the Greater China business structure was maintained." However, Cosrx showed weak performance, with sales declining by 30%.

Recently, there is an assessment that the global cosmetics market is being reorganized around indie brands. Researcher Kim stated, "Amorepacific has also responded to changing trends by simultaneously expanding major brands into Western markets and pursuing new brand acquisitions, but in the stock market, the company still tends to be perceived as a legacy brand. However, this is merely an inertial stereotype, and in the new markets driving current growth, the company is no different from indie brands. Rather, it is positive that Amorepacific can utilize various brand strategies while securing the infrastructure of a large company."

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