[Click e-Stock] "d'Alba Global: Growth Expectations Need Adjustment... Target Price Cut"

Samsung Securities lowered its target price for d'Alba Global on the 21st, from 300,000 won to 240,000 won, saying expectations for the pace of revenue growth needed to be adjusted. It maintained its Buy rating.

Samsung Securities analyst Jeong Donghui said, "The strategy is focused on expanding channels centered on best-selling products (SKUs), so expectations for the pace of revenue growth need to be adjusted. We lowered our operating profit estimates for 2026 and 2027 by 4% and 6%, respectively, from our previous estimates."

d'Alba Global's third-quarter results this year are expected to meet market forecasts, with revenue rising 46.2% year over year to 166.9 billion won and operating profit increasing 94.2% to 32.3 billion won. "Despite the impact of the won's strength and a domestic shortage of sunscreen containers that lasted through August, new overseas channel placements continued. Domestic revenue is expected to fall 5.2% to 38.6 billion won, while overseas revenue is forecast to rise 74.6% to 128.3 billion won," Jeong said. "Revenue growth compared with the previous quarter was limited by a gap in major promotional events. However, marketing cost leverage increased year over year, and the operating margin is expected to reach 19.4%, up 4.8 percentage points from a year earlier."

The operating margin is expected to improve starting next year. Jeong noted, "Since Prime Day in early October, the company has been seeing meaningful results on Amazon Europe. Its B2B (business-to-business) operations are also gaining traction: Costco is expanding to all 650 stores in the United States, with the initial order exceeding 10 billion won; additional SKUs are being added at Ulta Beauty; Boots in the United Kingdom placed an additional order in September; and the company has completed placement at 700 Watsons stores in Malaysia. From 2027, revenue is expected to gain momentum, driven primarily by repeat orders, alongside an improvement in the operating margin."

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