 |
Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Daishin Securities has maintained its 'BUY' rating for Amorepacific, but lowered its target price from KRW 170,000 to KRW 140,000, citing the lack of explosive growth momentum for 2025. The stock closed at KRW 105,100 on the previous trading day, indicating a potential upside of 33.21% to the revised target price.
According to Daishin Securities' report on the 30th, the company's fourth-quarter revenue is expected to increase by 10% year-on-year, reaching KRW 1.027 trillion, with operating profit forecast to rise by 291% to KRW 80.9 billion.
For the domestic market, Daishin Securities estimates a 3% decline in revenue to KRW 449.6 billion, with operating profit expected to drop by 13% to KRW 41.9 billion.
The report explains, "While there has been steady growth in the MBS (Health & Beauty) and e-commerce channels, department store sales are expected to remain at similar levels to the previous year. Meanwhile, sales from duty-free and direct sales channels are expected to continue declining. Duty-free sales are forecast to drop by 30% year-on-year due to a reduction in B2B volume, with the channel's share falling to 30%."
However, Daishin Securities notes that "due to changes in management cycles, indirect cost burdens are expected to decrease, which should result in margins similar to the previous quarter for the duty-free channel."
For international markets, the inclusion of COSRX is expected to contribute to a 32% increase in overseas revenue to KRW 472.3 billion, with operating profit turning into a surplus of KRW 44.7 billion, compared to a loss in the previous year.
Daishin Securities further comments, "Laneige and Innisfree continue to show solid growth in Western markets, with North America projected to grow in the 20% range. Expanding in European markets and channels has contributed to strong growth."
On the other hand, the report estimates a 30% decrease in sales in China due to the restructuring of online and offline operations. However, with inventory adjustments and personnel changes nearing completion, the report expects a reduction in one-time costs compared to the previous quarter, leading to a smaller loss.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
