[Click eStock] "Amorepacific, Global Growth This Year... Target Price Raised"

Daishin Securities predicted on the 7th that Amorepacific will continue a solid growth trend this year due to a turnaround in its China business (performance improvement) and accelerated global expansion.

Based on this analysis, Han-sol Jeong, a researcher at Daishin Securities, raised Amorepacific's target stock price to 160,000 KRW and maintained a 'Buy' investment rating.

Researcher Jeong explained, "The restructuring of the China subsidiary, which had been a burden on performance, was completed, and the operating loss in the fourth quarter of last year decreased following the previous quarter," adding, "The China turnaround is becoming visible this year." He also analyzed, "In North America, new brand entries are planned, and in Europe, growth will continue through expanded entry channels and strengthened marketing for Laneige and Innisfree," and stated, "We are revising upward the earnings estimates and target stock price."

Amorepacific recorded consolidated sales of 1.0917 trillion KRW in the fourth quarter of last year, up 17.9% year-on-year, and operating profit of 78.5 billion KRW, an increase of 279.7% compared to the previous year. Sales exceeded market expectations, but operating profit fell short of expectations. Additionally, the company recognized a goodwill impairment of 132.8 billion KRW this quarter due to amortization of goodwill from Tata Harper, acquired in 2022, and Rationel, in which it made an equity investment in 2020, resulting in a net loss.