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View of AmorePacific headquarters. (Photo = AmorePacific) |
[Alpha Biz= Reporter Kim Minyoung] Meritz Securities maintained its target stock price of KRW 165,000 and investment opinion "buy" on the 8th, saying AmorePacific has entered a clear improvement.
Meritz Securities expects AmorePacific's first-quarter sales to rise 3.5% on-year to KRW 945.9 billion and operating profit to KRW 52.7 billion, down 18.2% on-year.
As for the domestic sector, he said, "We will defend the reduction of online reverse direct purchases and weak traditional channels due to the duty-free base effect and strong H & B," and for overseas Western sales, "Both North America and Europe will remain strong with the launch of Sephora collaboration products."
Meritz Securities Co. forecasted operating losses on its sales in China, saying it considered the impact of adjusting wholesale sales of Sulwhasoo and streamlining Innisfree stores.
"This is a clear improvement," Meritz Securities said. "It refers to natural growth through regional diversification and brand efficiency. Korea will continue to diversify channels, other Asia will add brands, and the West will continue to strengthen its portfolio."
"It is also valid to include the KOSRX connection in the second quarter and switch to China's surplus in the second half," Meritz Securities said. "There is a lot to talk about among KOSPI's daily consumer goods."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
