[Click eStock] "APR's Annual Revenue to Surpass 3 Trillion Won This Year... Target Price Raised"

On July 14, KB Securities announced that it expects APR's annual revenue to surpass 3 trillion won this year, driven by its global expansion, and accordingly raised its target price from 500,000 won to 530,000 won. The investment rating was maintained at 'Buy.'

Minyoung Son, a researcher at KB Securities, stated, "Reflecting high growth in Europe and robust online growth and offline expansion in the United States, we are raising our profit estimates for 2026 and 2027 by 7.3% and 9.7%, respectively." He added, "We project APR's revenue in 2026 to reach 3.1 trillion won, up 102.8% year-on-year, and operating profit to reach 764.1 billion won, up 110.9% compared to the previous year."

APR's second quarter results this year are expected to exceed market expectations. Son explained, "Consolidated revenue for the second quarter is estimated at 756 billion won, up 131.6% year-on-year, and operating profit is estimated at 183.3 billion won, up 132.6%. This would exceed the operating profit consensus (the average forecast by securities firms) by 5.6%." Revenue in the United States for the second quarter is expected to be 310.6 billion won, a 222.9% increase. Son further stated, "Reflecting the strong performance of the Amazon Prime Day event in June and a quarter-on-quarter increase in TikTok Shop's gross merchandise value (GMV), online revenue is estimated to have increased by approximately 25% quarter-on-quarter to 280 billion won." He continued, "Offline revenue is expected to reach about 31 billion won, reflecting reorder volumes from Ulta and Target channels, as well as initial shipments to 3,000 new Walmart stores." Domestic revenue is forecast to decline by 13.3% to 63.5 billion won. Son analyzed, "The main reason is the sales gap in May caused by the discontinuation of the first-generation Booster Pro following the launch of the second generation."

This year, rapid growth in Europe is expected to stand out. Son commented, "Based on our success in the United States, the impact of direct entry into Amazon and TikTok Shop in Europe is starting to become apparent." He added, "During the Amazon Prime Day event at the end of June, up to nine SKUs (stock keeping units) were ranked in the top 100 BSR (Best Seller Ranking) across five major European countries, confirming the rapid spread of popularity. Accordingly, we forecast that revenue growth in Europe and other regions this year will reach 242.8% year-on-year."

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