Hanwha Investment & Securities has set a target price of 140,000 won for Amorepacific Corporation. This judgment comes as the company’s operating profit for the first quarter exceeded market expectations, indicating an anticipated improvement in performance this year. The investment opinion remains at "buy."
According to Hanwha Investment & Securities on the 2nd, Amorepacific Corporation's operating profit for the first quarter was 117.7 billion won, up 62% compared to the same period last year, surpassing the market forecast of 99.5 billion won.
Key brands such as Laneige, Innisfree, and Sulwhasoo drove growth, with sales for the first quarter rising to 1.0675 trillion won, a 17.1% increase compared to the same period last year.
Han Yoo-jung, a researcher at Hanwha Investment & Securities, noted, "The Chinese subsidiary has turned to profitability after eight quarters," adding, "The addition of new growth brands like Estra has recorded a performance surprise."
Hanwha Investment & Securities predicted that performance will improve further in the second half of the year, as Amorepacific Corporation is expected to launch new brands in the U.S. by May.
One researcher said, "As global market expansion becomes more pronounced, this is likely to bring gradual changes to the regional portfolio and revenue structure in the future."