Corporate Logo(source: apgroup.com)
Korea Investment & Securities Co.,Ltd has raised its target price for Amorepacific (090430) from 170,000 won to 180,000 won, citing expectations of improved performance supported by the company's diversified brand portfolio and renewed investor interest in the Korean cosmetics sector.
Analysts Myungjoo Kim and Yoona Jeon commented, “Although the pace of earnings recovery may be somewhat restrained due to Amorepacific’s broad brand portfolio, this diversity is also a factor that merits a valuation premium. In the second half of the year, the company’s foreign ownership is likely to recover amid the government’s active market-boosting policies and rising attractiveness of Korean equities, particularly in the cosmetics sector.”
For the second quarter of 2025, the brokerage estimates Amorepacific’s consolidated revenue at 1.0243 trillion won and operating profit at 72.2 billion won, representing an operating margin of 7%. Although this falls approximately 6% short of market consensus, they noted that the weaker-than-expected earnings are already reflected in the recent share price correction.
While Cosrx is projected to remain weak in the second quarter, this is expected to be offset by robust growth from Laneige, particularly in North America (up 11% year-on-year) and Europe (up 28%). Sales in China are projected to grow 20% year-on-year due to a low base effect, with duty-free sales likely to increase by around 10%. The Chinese business, having undergone successful structural reforms, is expected to maintain breakeven levels for the second consecutive quarter.
The analysts also highlighted remaining upside potential in Amorepacific’s China operations. “Although it is disappointing that Korea’s cosmetics exports to China have resumed a year-on-year decline, there is still meaningful upside risk in the Chinese cosmetics market in the second half of the year,” they said. “If industry conditions improve, Amorepacific’s Chinese subsidiary could see significant enhancements in profitability, particularly in its operating margin.”
*[KOSPI] Amorepacific(090430) is a cosmetics manufacturing specialist with brands such as Sulwhasoo, Hera, Ryo, Mise-en-scène, and Happy Bath. The market capitalization is 7.774 trillion won (as of June 26, 2025, closing price).
Corporate Logo(source: apgroup.com)
Korea Investment & Securities Co.,Ltd has raised its target price for Amorepacific (090430) from 170,000 won to 180,000 won, citing expectations of improved performance supported by the company's diversified brand portfolio and renewed investor interest in the Korean cosmetics sector.
Analysts Myungjoo Kim and Yoona Jeon commented, “Although the pace of earnings recovery may be somewhat restrained due to Amorepacific’s broad brand portfolio, this diversity is also a factor that merits a valuation premium. In the second half of the year, the company’s foreign ownership is likely to recover amid the government’s active market-boosting policies and rising attractiveness of Korean equities, particularly in the cosmetics sector.”
For the second quarter of 2025, the brokerage estimates Amorepacific’s consolidated revenue at 1.0243 trillion won and operating profit at 72.2 billion won, representing an operating margin of 7%. Although this falls approximately 6% short of market consensus, they noted that the weaker-than-expected earnings are already reflected in the recent share price correction.
While Cosrx is projected to remain weak in the second quarter, this is expected to be offset by robust growth from Laneige, particularly in North America (up 11% year-on-year) and Europe (up 28%). Sales in China are projected to grow 20% year-on-year due to a low base effect, with duty-free sales likely to increase by around 10%. The Chinese business, having undergone successful structural reforms, is expected to maintain breakeven levels for the second consecutive quarter.
The analysts also highlighted remaining upside potential in Amorepacific’s China operations. “Although it is disappointing that Korea’s cosmetics exports to China have resumed a year-on-year decline, there is still meaningful upside risk in the Chinese cosmetics market in the second half of the year,” they said. “If industry conditions improve, Amorepacific’s Chinese subsidiary could see significant enhancements in profitability, particularly in its operating margin.”
*[KOSPI] Amorepacific(090430) is a cosmetics manufacturing specialist with brands such as Sulwhasoo, Hera, Ryo, Mise-en-scène, and Happy Bath. The market capitalization is 7.774 trillion won (as of June 26, 2025, closing price).