The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.4Q23 OP falls short due to inventory adjustments at distributorsAmorepacific posted consolidated operating profit of KRW20.7bn (-64% YoY) on sales of KRW926bn (-15% YoY) for 4Q23, missing our estimate (KRW
The Korean beauty care industry is turning its eyes to the Japanese market. It is a strategy to try to rebound by targeting Japan as an alternative market as its performance weakened due to a decline in the market share of Korean cosmetics in China.LG Household and Health Care’s cumulative sales thr
After facing performance setbacks last year, Amorepacific is aiming for a rebound in the U.S. market this year.A report released by Kiwoom Securities on Jan. 5 forecasts that Amorepacific’s revenue for this year will be 4.2177 trillion won, with operating profits expected to be 406.1 billion won.In
The author is an analyst for Shinhan Securities. He can be reached at hpark@shinhan.com -- Ed.Investment point 1: Domestic earnings driven by inbound touristsInbound visitors to Korea rose to 960,000 in July, reaching 66% of the 1.45mn level seen in July 2019 with triple-digit growth continuing ever
The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.2Q23 review: Booking of mostly one-off costs already knownAmorepacific posted 2Q23 consolidated sales of KRW945.4bn (flat YoY) and operating profit of KRW5.9bn (positive swing YoY). Sales came in line with
The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.We now expect Amorepacific to post consolidated operating profit of KRW50.3bn (positive swing YoY) on sales of KRW988.2bn (+5% YoY) for 2Q23, falling short of our previous forecasts by a wide margin. While
The Amorepacific Group has signed a memorandum of understanding (MOU) to strengthen its strategic partnership with global retail company A.S. Watson Group.Lee Sang-mok, CEO of the Amorepacific Group, and Malina Ngai, Asia & Europe CEO of A.S. Watson Group, met at the Amorepacific Group's headqua
The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.1Q review: Demand still weak in China but stronger elsewhereAmorepacific posted consolidated operating profit of KRW64.4bn (-59% YoY) on sales of KRW913.7bn (-22% YoY) for 1Q23, falling short of the market
The author is an analyst for NH Investment & Securities. She can be reached at jiyoony@nhqv.com -- Ed.AmorePacific’s 1Q23 results arrived below market expectations. Domestic profitability worsened on sluggish high-margin duty-free and sluggish e-commerce channel sales, while overseas sales recorded
The authors are analysts of Shinhan Securities. They can be reached at hpark@shinhan.com and jieun.ju@shinhan.com. – Ed.4Q earnings exceed market consensus, in line with SHS estimatesAmorepacific delivered an earnings surprise for 4Q22 at a consolidated operating profit of KRW57bn (+122.7% YoY) on s
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Maintain BUY but lower target price 6% to KRW170,000 We maintain BUY on Amorepacific but lower our TP by 6% to KRW170,000 to reflect downward revisions to 2023E/2024E OP of 5-7%. The Chinese market was expe
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Maintain BUY, lower target price 9% to KRW200,000 We maintain BUY on Amorepacific despite lowering our TP by 9% to KRW200,000 (2022E OP/2023E-24E OP revised down 17%/3-5%). We expect 2Q22 results to disappo
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Raise target price 10% to KRW220,000 We maintain BUY on Amorepacific and raise our TP by 10% to KRW220,000 to reflect upward revisions to 2022E/2023E/2024E OP by 8%/3%/3%. The prolonged COVID-19 lockdown in
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Prospect of mid/long-term earnings turnaround remains intact We trim our TP by 2% to KRW200,000 for Amorepacific as we reflect downward revision to 2022E OP of 8%; our changes to 2023E and 2024E OP are mini
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. In 1Q22, AmorePacific’s earnings are to be dented by Innisfree sales contraction and stricter disease prevention measures in China. But, it should benefit from consumption normalization and product mi
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Upgrade to BUY, raise target price 21% to KRW205,000 We upgrade Amorepacific to BUY and raise our TP by 21% to KRW205,000. We revise 2021-2028E OP CAGR (10%→13%) as well as 2022E/2023E OP (-1%/+7%). 2022E O
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Maintain HOLD; lower target price 17% to KRW170,000 We maintain HOLD on Amorepacific and lower our TP by 17% to KRW170,000 given downward revisions to 2022E/2023E OP by 15%/17%. We do not expect the stock t
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. AmorePacific’s 4Q21 results are likely to miss consensus due to the sluggishness of Innisfree in China. However, sales growth for high-end products should drive overall earnings improvement going forw
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. On the back of increasing high-margin sales both from Sulwhasoo and through e-commerce channels, AmorePacific’s China subsidiary should enjoy sales growth and profitability improvement moving ahead.Po
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. In the domestic cosmetics market, concerns over intensifying competition and consumption slump in China are mounting. Jitters related to China stem from the resurgence of Covid-19, a real estate marke