"APR Diversifies Distribution Channels in Europe and the Middle East... Growth in Scale and Margins" [Click e-Stock]

Samsung Securities Raises Target Price by 2%

On June 25, Samsung Securities raised its target price for APR to 5.1 million won, a 2% increase from the previous target of 5 million won, citing the company’s strong brand power across both online and offline distribution channels. The investment opinion was maintained as ‘Buy’. According to the analysis, there is a potential upside of 43.5% compared to the closing price of 3,555,000 won on June 23.

Jung Donghee, a research analyst at Samsung Securities, stated, “APR is a brand that has secured distribution leadership regardless of online or offline channels,” and added, “Along with the diversification of global supply channels, both its scale and margins are expected to grow simultaneously.”

The U.S. beauty market has an offline sales share of about 60%, but APR’s offline sales share in the U.S. is only around 10%, leaving significant room for future expansion into the offline market. Analyst Jung commented, “The number of APR products ranked in the top 100 of the skincare category on Amazon U.S. has increased to 7 or 8,” adding, “This indicates that the brand is becoming established as a consumer choice, not just enjoying success with a limited number of specific items.”

APR’s successful experience in the U.S. is now expanding to new markets such as Europe. In the fourth quarter of last year, APR entered Amazon UK and TikTok Shop, and in the first quarter of this year, it sequentially expanded into Germany, France, Spain, and Italy. As both business-to-business (B2B) sales leveraging major K-beauty vendors and business-to-consumer (B2C) online sales increase, it is expected that from the second quarter, quarterly sales in Europe and other regions will surpass 200 billion won. Japan, which is aiming for sales growth per store, and the Middle East, where pharmacy channels are central, are also projected to become next-generation growth drivers after 2026.

Based on this, APR’s revenue this year is expected to reach 2.8838 trillion won, up 88.8% year-on-year, with operating profit forecast at 733.3 billion won, a 100.6% increase. With efficient marketing spending leading to operating leverage, the operating margin is projected to rise from 23.9% in 2025 to 25.4% this year and 25.9% next year. Tariffs, previously considered an obstacle to U.S. growth, are expected to be offset by approximately 20 billion won in refunds, which will be reflected quarterly throughout the year.

Jung added, “APR has recorded the highest growth rate in its sector over the past two years, dispelling doubts about its valuation premium. The launch of new growth drivers, including the Booster Pro X2 home beauty device to be released in the U.S. in the middle of this year and the dermatology EBD medical device in Korea in the second half, along with proactive shareholder return measures such as dividends and share buybacks, will further enhance investment appeal.”

This content was produced with the assistance of AI translation services.