[Featured Stock] AmorePacific Faces Earnings Slump Due to China Lockdown Impact... Down 8%

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] On the morning of the 22nd, Amorepacific's stock price is plummeting. This is due to the expected poor performance caused by China's lockdown measures.

As of 10:21 AM, Amorepacific is trading at 129,500 KRW, down 8.16% from the previous trading day. During the session, Amorepacific's price fell to 128,500 KRW, hitting a 52-week low.

On the same day, Hyundai Motor Securities forecasted a decline in local and duty-free channels due to the impact of China's lockdown, lowering this year's estimated operating profit by 8% compared to the previous estimate. The target price was also reduced by 11.11%, from 180,000 KRW to 160,000 KRW.

Hyundai Motor Securities analyst Jung Hye-jin stated, "Amorepacific's consolidated sales for Q2 this year are expected to be 1.0261 trillion KRW, and operating profit 58.1 billion KRW, down 12.85% and 36.3% respectively compared to the same period last year, falling short of market expectations. Although the absolute stock price level has decreased due to macroeconomic uncertainties, a downward revision of the target price is inevitable given the expected poor performance in the China-related channels."