April 26, 2024

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[THE INVESTOR] AmorePacific’s fourth-quarter earnings are estimated to have missed the market expectation, dented by the worsening market conditions across major channels at home and the quantitative caps on duty-free channels, said Mirae Asset Daewoo on Jan. 18. 

The securities firm lowered the target price to 500,000 won (US$429.55) from 550,000 won.

Its revenue rose 11.4 percent on-year to 1.37 trillion won and operating profit by 8.3 percent to 133.6 billion won in the fourth quarter last year, estimated analyst Ham Seung-heui. 

“The growth rate of revenue at home will be 6.2 percent as the cosmetics and household goods sales have deteriorated, and the duty-free sales will post 8.9 percent growth at 375.1 billion won,” said the analyst. 

It is inevitable that worsening consumption at home eats away growth, however, it can be offset by its strong advance overseas, noted Ham, maintaining a “buy” recommendation.

By Hwang You-mee (glamazon@heraldcorp.com)