[Market Focus] Able C&C Rises 4% on Missha-Centered Strategy Amid Earnings Recovery Prospects

On July 24, Able C&C showed strong performance in early trading. This came as securities analysts reported that the company’s earnings recovery is in full swing, with overseas results improving and the company announcing its intention to focus on its flagship brand, Missha.

As of 10:10 a.m. on this day, Able C&C was trading at 9,550 won, up 390 won (4.26%) from the previous trading day.

According to the investment banking industry, private equity fund IMM Private Equity is moving to separate and sell the cosmetics brand A’pieu from Able C&C.

Able C&C is a cosmetics company with a variety of brands, including Missha, A’pieu, Merzy, and Stila.

By brand, sales are highest for Missha, followed by A’pieu. In particular, Missha is reported to account for about 80% of the company’s total sales.

Able C&C plans to strengthen the competitiveness of the Missha brand by focusing its efforts following the separation and sale of A’pieu.

Securities analysts have also noted that Able C&C is on the path to earnings recovery. Shinhan Investment & Securities evaluated Able C&C as a small- to mid-cap company whose overseas performance growth is becoming visible, and advised that it warrants maximum attention from a buying perspective.

Park Hyunjin, a researcher at Shinhan Investment & Securities, said, “As the earnings recovery is in full swing, a rerating is also possible. Even though the earnings estimates are quite conservative, the P/E ratio is only in the low 10s, which makes the stock highly attractive.”