[Click eStock] "APR, Expected Increase in US Sales This Year"

On the 28th, Korea Investment & Securities analyzed that APR's sales in the United States will increase this year. Accordingly, they initiated coverage with a 'Buy' rating and a target price of 430,000 KRW.

Myungjoo Kim, a researcher at Korea Investment & Securities, stated, "This year, due to favorable sales growth in the U.S., the domestic sales proportion is expected to decrease from the previous 61% to 53.6%, while overall sales will increase by +96.8% YoY."

APR launched Booster Pro in Japan and the U.S. in February this year and is also planning global sales of its new product, Ultratoon. Researcher Kim explained, "The popularity of Korean indie cosmetics in the U.S. market has been steadily increasing recently. Therefore, APR's U.S. cosmetics business sales (+75.2% YoY) are expected to show a favorable growth trend."

APR plans to release two additional new products in the second half of this year. Researcher Kim predicted, "Once the releases from Booster Pro to Ultratoon and the new products are completed, APR will have the necessary lineup for home beauty devices, further enhancing its brand power."

However, recent regulations regarding product performance and safety for high-frequency devices in China may slow down the growth pace. Since April, high-frequency devices require certification involving clinical trials. The competitor, Japan's Ya-Man, has passed the certification.

Researcher Kim pointed out, "While these regulations are essential for the growth of the home beauty device industry, in the short term, they may act as a factor that slows the company's sales growth rate more than the market expects."