April 26, 2024

• 

[THE INVESTOR] Amorepacific’s earnings inthe fourth quarter last year fell, said Mirae Asset Daewoo on Jan. 18, lowering the target price by 4.8 percent to 400,000 won (US$374.04). 

Its revenue was down 5.9 percent on-year to 1.24 trillion won and operating profit by 13.3 percent to 88.7 billion won. While the operating profit does more than meets market consensus, it does not indicate that it performed better than expected, said analyst Ham Seung-heui.

Sales of cosmetics in the domestic market dropped 17.1 percent to 636.4 billion won, and duty-free sales and digital channels will continue to struggle, while sales from overseas has bottomed out and is gaining strength, noted the analyst. 

Expectations for a turnaround are rising, though, as the strategic reshuffle of its portfolio is hitting stride and it will accelerate expanding in overseas markets, said Han maintaining a “buy” recommendation. 

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