Hana Financial Investment raised the target price of Amorepacific from 200,000 won to 220,000 won, citing continued expansion of its market share in the United States.

Hana Financial Investment raised the target price of Amorepacific from 200,000 won to 220,000 won, citing continued expansion of its market share in the United States.: COMPANY / Reporter Kim SangJin / 2024-05-30 05:04:22

View of AmorePacific headquarters. (Photo = AmorePacific)

[Alpha Biz= Reporter Kim Sangjin] On the 29th, Hana Financial Investment raised the target price of Amorepacific from 200,000 won to 220,000 won, citing the continued expansion of its market share in the United States.

According to Hana Financial Investment's report, "Amorepacific has been focusing on expanding its U.S. business since last year." They analyzed, "While the U.S. market is growing at an annual average of 4%, Amorepacific grew by 58% last year, expanding its U.S. market share."

Based on last year's figures, North America sales reached 280 billion won, accounting for 8% of total sales.

Hana Financial Investment particularly noted that Amorepacific has made significant inroads into the global beauty retailer Sephora with its Laneige brand and also entered the market with Innisfree. They forecasted, "Considering the sales of CosRX in the U.S., Amorepacific's share in the U.S. could expand to 14% of total sales."

However, they pointed out a clear downward trend in Chinese sales last year, stating, "Due to restructuring at Sulwhasoo and overall weak consumption, a loss of about 100 billion won was recorded."

Hana Financial Investment predicted Amorepacific's performance for this year with consolidated sales of 4.3 trillion won (up 18% year-on-year) and operating profit of 400 billion won (up 276% year-on-year).