[Edaily Reporter Lee Hye-ra] #Aurora is expected to post record-breaking earnings, driven by growth at its U.S. subsidiary and improvements in its financial structure.

Kang Kyung-geun, an analyst at NH Investment & Securities, stated on the 17th, “Along with earnings growth, we also expect a revaluation of the company’s stock based on the easing of its financial burden.”
The key point is that the U.S. market, which accounts for approximately 75% of Aurora’s revenue, is growing. Revenue from the U.S. subsidiary rose 25% year-over-year to 224.9 billion won last year and increased another 28.4% to 74.0 billion won in the first quarter of this year. Analyst Kang noted, “Expanded sales of the company’s proprietary intellectual property (IP) brand ‘Palm Pals’ and the acquisition of the doll brand ‘Mary Meyer’ are driving the growth of the U.S. business.”
Improvements in the company’s financial structure were also cited as a key investment point. He noted, “High debt and interest expenses have historically eroded earnings per share (EPS) and acted as a factor discounting the stock price.” He added, “We are currently proceeding with the sale of our new headquarters in Pangyo, which is currently valued at approximately 140 billion won,” and said, “We plan to use the proceeds to repay debt, and we expect this to reduce interest expenses and improve financial stability.”
NH Investment & Securities projected that Aurora will post revenue of 410.2 billion won and operating profit of 65.8 billion won this year, reflecting favorable exchange rates, strong sales at its U.S. subsidiary, and growth at its UK and Hong Kong subsidiaries driven by the global expansion of PalmPals. These figures represent year-over-year increases of 25.0% and 47.9%, respectively, marking the company’s best-ever performance.
Analyst Kang noted, “The expected price-to-earnings ratio (PER) for this year is only 5.5 times,” adding, “If the company’s strong earnings momentum is coupled with the realization of financial restructuring through the sale of investment properties, a revaluation of the company’s value is possible.”