[Market Focus] Amorepacific Jumps 6% Early in Session... "Earnings Recovery Starting in Q2"

Amorepacific showed strong performance in early trading on the 20th. The buying sentiment appears to have revived due to expectations for improved earnings driven by a recovery in sales in China.

As of 9:10 a.m. on this day, Amorepacific shares were trading at 141,500 won, up 6.15% from the previous trading day. The stock opened at 137,700 won and has been expanding its gains since the market opened.

On this day, Jung Ji-yoon, a researcher at NH Investment & Securities, stated, "From the second quarter, sales in China and duty-free channels increased by 21% and 10% year-on-year, respectively, making the recovery of performance in the China-related channel more visible." Jung further evaluated that "the recovery of consumption in China and the improving relationship between the two countries will also have a positive effect on investment sentiment." Jung raised the target price from the previous 155,000 won to 175,000 won.

Amorepacific's consolidated sales for the second quarter are expected to reach 1.016 trillion won, up 12% year-on-year, and operating profit is forecast to surge 1,774% to 75.8 billion won, in line with the consensus (the average estimate by securities firms).