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View of AmorePacific headquarters. (Photo = AmorePacific) |
[Alpha Biz= Reporter Kim Minyoung] On the 23rd, Kiwoom Securities raised the target price for Amorepacific from 200,000 KRW to 230,000 KRW, noting that COSRX will be included in Amorepacific's consolidated financial statements.
In their report, Kiwoom Securities stated, "With COSRX being incorporated into Amorepacific's consolidated performance starting this month, the profit contribution from non-China overseas channels is expected to increase."
They highlighted that "COSRX is the most successful brand in the U.S. among brands that can be invested in through the domestic stock market," and noted that Amorepacific's global rebalancing strategy is leading to a rapid shift away from a China-centric business structure.
For this year, they projected consolidated sales to increase by 6% year-on-year to 3.9745 trillion KRW, and operating profit to surge by 247% to 375.6 billion KRW.
Regarding annual operating profit, they estimated that the existing business segments would see a 92% increase from the same period last year to 208.2 billion KRW, while COSRX, reflected from May onwards, would contribute an annual operating profit of 167.5 billion KRW.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
