[THE INVESTOR] Amorepacific still faces unstable market conditions and its earnings improvement is slower than expected, said KB Investment and Securities on July 13, lowering the target price to 380,000 won (US$338.35) from 420,000 won while maintaining a “buy” recommendation.
Due to the delay in recovery of inbound Chinese tourism, the beauty giant’s stock price has fallen 15 percent from the highest in early May. Its revenue in the second quarter will rise 12 percent on-year to 1.34 trillion won and operating profit will surge 63 percent to 165.4 billion won, turning around for the first time in five and seven quarters, respectively, said analyst Park Sin-ae.
Lower-than expected growth rate of its Chinese operation has been a factor in the decline in its stock price, and in the latter half it will fully initiate expanding premium Sulwhasoo range. Further unfavorable factors are unlikely to emerge, she said.
By Hwang You-mee (firstname.lastname@example.org)