[Edaily Reporter Hyera Lee ] On the 6th, Yuanta Securities Korea projected that AMOREPACIFIC CORPORATION(090430)’s second-quarter operating profit would meet market expectations, driven by growth in Western markets, particularly North America and Europe. The firm maintained its “Buy” rating and target price of 178,000 won.

Lee Seung-eun, an analyst at Yuanta Securities Korea, stated in a report released that day, “With strong growth continuing in North America and Europe, second-quarter operating profit is expected to meet market expectations,” adding, “In the second half of the year, seasonal profit improvements could further bolster the stock’s upside potential.”
Yuanta Securities Korea estimated AMOREPACIFIC CORPORATION’s second-quarter revenue at 1.075 trillion won and operating profit at 99 billion won. This represents year-over-year increases of 7% and 34%, respectively, with operating profit expected to meet market estimates (97.1 billion won).
The firm forecast that the domestic business would continue to show steady growth, driven by strong performance in department stores and duty-free channels. Domestic sales were estimated at 600 billion won, an 8% increase year-over-year.
Overseas, the outlook is expected to vary by region. The analyst explained, “North American revenue is projected to reach 165 billion won, a 23% year-over-year increase, in line with the company’s growth guidance in the 20% range,” adding, “Given the strong sales of Laneige and COSRX during Amazon Prime Day, robust momentum is continuing.”
He continued, “In Europe, the Middle East, and Africa (EMEA), COSRX will drive growth, with revenue rising 36% to 60 billion won and the operating profit margin maintaining a double-digit level.” He added, “In contrast, revenue in Greater China is expected to decline by 23% to 102 billion won due to the impact of streamlining Sulwhasoo’s department store locations.”
He also expressed optimism regarding earnings improvement in the second half of the year. The analyst said, “In the third quarter, profitability is expected to improve compared to the second quarter as the burden of incentive costs for overseas subsidiaries subsides,” adding, “In the fourth quarter, profits are projected to rise to the next level as both the U.S. and South Korea enter their peak sales season, driven by the holiday season effect.”
He added, “The high-growth trend in Western markets, led by North America and Europe—which have relatively high margins—will be further bolstered by seasonal profit improvements in the second half,” and concluded, “We believe the stock price has room for further gains.”