[Alpha Biz= Reporter Kim Minyoung] Hanwha Investment & Securities raised AmorePacific's target stock price to KRW 220,000.

Hanwha Investment & Securities said, "AmorePacific's consolidated sales in the first quarter were 911.5 billion won and operating profit was 72.7 billion won, far exceeding the previous estimated operating profit of 54.2 billion won and consensus operating profit of 50.9 billion won."

Domestic cosmetics sales growth was slow, but domestic operating profit increased 36% due to luxury and premium brand-oriented growth and cost structure improvement. Overseas, sales in China fell 19% as sales of all brands declined due to the reduction of major channel inventory and the concentration of key products by brand.

However, due to the improvement of cost structure, operating profit in Asia turned into a surplus. In addition, sales of Laneige in EMEA and North America grew 102% and 55%, respectively, with overseas sales falling only 2%.

"We have raised the target price with the upward revision of the profit promotion policy," Hanwha Investment & Securities said. "In the past, the shift from department store and Free Standing Store-oriented channel structures to Multi Brand Shop and online channels has been completed, and the decrease in the absolute amount of depreciation has continued."

 

 

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