[Click e-Stock] Amorepacific’s Derma Brands Thrive... Target Price Raised

Strengthening Global Multi-Channel Strategy Expected

On September 8, NH Investment & Securities maintained its "Buy" investment opinion on Amorepacific, raising its target price from KRW 170,000 to KRW 185,000. The firm stated that the continued growth of Amorepacific will be driven by the strong performance of its derma brands and the reinforcement of its global multi-channel strategy.

Jung Ji-yoon, analyst at NH Investment & Securities, analyzed, "This year, derma brands such as COSRX, Aestura, and Illiyoon have led the way, and the proportion of derma sales is expected to rise to 25% of the company's total sales. In particular, during the first half, combined domestic sales of Aestura and Illiyoon reached KRW 167 billion, up 48% year-on-year, demonstrating robust growth."

Jung explained, "Aestura, leveraging its strong foundation based in leading tertiary hospitals in Korea, is now expanding beyond Japan and other Asian markets into the United States through an entry into Sephora, and subsequently into Canada, Australia, and Europe. Similarly, Illiyoon is demonstrating its potential for global growth by launching a new specialized derma care line in September and performing strongly in overseas channels such as Amazon US."

She projected, "On a consolidated basis, third-quarter revenue is expected to reach KRW 1.127 trillion (up 11% year-on-year) while operating profit is forecast at KRW 114.6 billion (up 25%), in line with market expectations. Domestic duty-free and multi-brand shop (MBS) channel sales are projected to remain solid, benefiting from a surge in inbound foreign tourists and a weaker US dollar, while stable growth in Japan and North America will continue."

Additionally, she commented, "Despite the reduction in department store locations in the Greater China region, the Chinese business continues to maintain a profit-driven trajectory. COSRX, as well, is expected to sustain its turnaround with third-quarter sales at KRW 139.5 billion (up 31%) and operating profit of KRW 34.2 billion (up 31%)."

She added, "Starting in 2027, a full-scale expansion into new growth channels such as Amazon and TikTok Shop, as well as expansion into Western offline retailers, will further drive company-wide margin improvement. We are changing our valuation base year to 2027 and recommend increasing weightings."

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