[THE INVESTOR] Amorepacific is likely to benefit from recovering tourism from China, said Shinhan Investment on Dec. 5, raising the target price by 10 percent to 430,000 won (US$397.05).
Its stock price rose over 8 percent on the previous day following e news that there was a rise in visa applications last month, a first upward movement, said analyst Lee Ji-yong. Korea has also granted visa-free entry to Chinese nationals until March 2018 for the PyeongChang Winter Olympics, he added.
The number of visitors from China this year will be down 48.5 percent to 4.15 million on-year but will rebound to 7.8 million next year, and 10 million in 2020. It will lead to improved revenue for the beauty giant, forecast the analyst.
Its earnings per share will jump 33.5 percent in 2018 and will remain on an upcycle, added Lee maintaining a “buy” recommendation.
By Hwang You-mee (email@example.com)