[Click eStock] "APR, Strong Overseas Growth Engine"

Triple-Digit Growth in the U.S., Global B2B, and Japan

APR is expected to show growth exceeding expectations overseas, including in the United States and Japan. It is anticipated to achieve annual sales of 1 trillion won by receiving positive responses not only for cosmetics but also for beauty devices.

On the 2nd, Kiwoom Securities maintained a 'Buy' rating on APR with this background and raised the target price by 13.2% to 86,000 won. The closing price the previous day was 70,700 won.

Stronger-than-expected growth is expected from the first quarter. Kiwoom Securities estimated sales of 223.3 billion won and operating profit of 40.6 billion won. This represents growth of 50% and 27% respectively compared to the same period last year, surpassing market expectations.

Overseas business sales alone are projected to reach 142.6 billion won, a 116% increase compared to the same period last year. Growth is expected in most regions except China. In particular, the U.S., Japan, and overseas B2B (business-to-business) channels are expected to drive performance. Growth by channel is forecasted at 154% for the U.S., 146% for global B2B, and 116% for Japan.

In the U.S., the cosmetics business is analyzed to be performing excellently. This is due to a significant increase in Amazon sales of hit products such as Zeromogong Pads, PDRN Ampoules, and Cleansing Oil. For global B2B, cosmetics are leading growth. By strengthening cooperation with distribution partners, the company is rapidly expanding in over 90 countries across Europe and Asia. In Japan, both beauty devices and cosmetics are growing. Existing online channels such as Qoo10 are showing steady growth, and expansion into offline channels like Don Quijote has also contributed.

Accordingly, the possibility of realizing the company's target sales of 1 trillion won and operating profit of 170 to 180 billion won this year has increased. Sojeong Cho, a researcher at Kiwoom Securities, explained the reason for raising the target price, saying, "While previous estimates conservatively projected profitability, considering the strong growth momentum recently observed, the target performance can be fully achieved."