 |
(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Amorepacific's Stock Falls Sharply After Q2 Earnings Miss Market Expectations
On August 7, Amorepacific's stock fell by 24.91% to close at 124,500 won, marking its largest single-day drop ever. The company's preferred shares also declined by 21.37%.
The dramatic drop in stock value led to a decrease in Amorepacific's market capitalization from 9.698 trillion won to 7.282 trillion won, a reduction of approximately 2.4 trillion won.
The sharp decline in stock price follows the release of the company's Q2 earnings report, which revealed a 29.5% year-over-year drop in operating profit to 4.2 billion won (preliminary). This figure is 94% below market expectations.
In response to the disappointing results, several brokerage firms have lowered their target prices for Amorepacific. Korea Investment & Securities reduced its target from 240,000 won to 200,000 won, while Hyundai Motor Securities cut its target from 230,000 won to 210,000 won. Additionally, Mirae Asset Securities and NH Investment & Securities both lowered their targets from 240,000 won to 200,000 won, and Kiwoom Securities and Hana Securities adjusted their targets from 220,000 won to 170,000 won and 190,000 won, respectively.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
