April 25, 2024

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[THE INVESTOR] Amorepacific’s business in China is yet to satisfy expectations, said Yuanta Securities on July 23, lowering the target price to 385,000 won (US$341.58) form 432,000 won.

As the estimated number of inbound Chinese tourists has been adjusted lower, the beauty giant’s annual duty-free sales, and target price, have been reduced accordingly. Its revenue in the second quarter will rise 15 percent on-year to 1.39 trillion won and operating profit by 53 percent to 155.7 billion won, 7 percent lower than market consensus. Revenue from its Chinese operations has grown 18 percent from the same period last year, slightly less than the 20 percent projected earlier, said analyst Park Eun-jeong.

In the US, though, revenue will surge 70 percent on-year and will continue to grow steadily as Laneige enters beauty emporium Sephora, Innisfree’s brand recognition advances and Mamonde begins to sell at cosmetics store chain ULTA, said the analyst. 

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