[Click e-Stock] "Amorepacific: Greater Earnings Stability Expected... Target Price Raised"

On September 14, Hanwha Investment & Securities announced that it expects greater earnings stability for Amorepacific, raising its target price from 180,000 won to 200,000 won. The firm maintained its "Buy" investment rating.

Yujeong Han, an analyst at Hanwha Investment & Securities, stated, "We have raised our profit estimates and adjusted our target price accordingly," adding, "With a reduced reliance on China and simultaneous growth in overseas regions such as the Americas, Europe, Middle East, and Africa (EMEA), as well as the expansion of NGE brands, both earnings growth and stability are expected to improve."

Hanwha Investment & Securities estimates that Amorepacific’s consolidated sales for this year will increase by 11.7% year-on-year to 4.75 trillion won, with operating profit rising by 47.0% to 493.8 billion won and an operating margin of 10.4%. For the 2027 fiscal year, the company forecasts sales to grow by 9.7% to 5.2093 trillion won, operating profit to climb by 18.3% to 584.4 billion won, and an operating margin of 11.2%.

'Aestura' and 'Illiyoon' are leading the expansion of the derma beauty segment. During the Investor Day held on September 11, Amorepacific set its combined sales target for Aestura and Illiyoon at 500 billion won for the 2027 fiscal year (July 2026–June 2027) and 1 trillion won for the 2030 fiscal year (July 2029–June 2030). Analyst Han stated, "Aestura has established itself as a growth brand overseas within the derma sector, and Illiyoon is also growing rapidly, especially in the United States. Given that both brands target different price ranges and customer bases but can utilize the same derma research capabilities and global distribution network, we believe there is sufficient mid- to long-term growth potential."

Hair and beauty are also expected to expand as new growth pillars. Sales increased from 390 billion won in the 2024 fiscal year to 490 billion won in the 2026 fiscal year, while the share of overseas sales rose from 30% to 41% during the same period. The 2030 sales target is set at 1 trillion won, with a global sales share of 60%. Analyst Han commented, "Given the specific roles and category expansion directions for each brand, the possibility of reaching the 1 trillion won target will increase if strong overseas sales growth continues."

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