[Edaily Reporter Kim Kyung-eun ] On the 3rd, Korea Investment & Securities projected that APR(278470)is highly likely to rebound in August as its earnings and growth potential are reevaluated, given that its valuation appeal has significantly increased following the July stock price correction. Accordingly, the firm maintained its “Buy” investment rating and target price of 520,000 won.

Kim Myeong-ju, an analyst at Korea Investment & Securities, stated in a report released that day, “APR’s current 12-month forward price-to-earnings ratio (PER) stands at 17.6x based on the consensus, which is lower than the average of 19.8x for major listed cosmetics brands, making it attractive.”

APR’s stock price has fallen 17% over the past month. While it held up relatively well compared to the KOSPI’s 22.2% decline during the same period, it underperformed the cosmetics sector, which rose 7.0%. Analysts attribute the stock’s weakness to lower-than-expected second-quarter earnings compared to competitors, as well as concerns over a slowdown in profitability in the second half of the year.

Analyst Kim explained, “As the intensity of Amazon Prime Day promotions in the second quarter was higher than in previous years, APR’s related cost burden likely increased as well,” adding, “Since the company is expanding its brand awareness through Amazon in Europe following its efforts in the U.S., related expenses in the second quarter were likely higher than in the first quarter.”

However, he projected that strong sales growth would offset the cost burden. “Net income is expected to continue its solid growth trend in 2026 and 2027,” he said, adding, “Despite being the Korean brand expanding its recognition most rapidly in the global market, its current valuation is the lowest.”

The company’s competitiveness on Amazon is also reportedly strengthening. As of the 1st, APR’s “Zero Pore Pad” ranked first in sales in the Amazon Beauty category in the U.S., the U.K., Germany, and Spain. Furthermore, the number of APR products included in the Amazon Beauty Top 100 in five major countries—the U.S., the U.K., Germany, France, and Spain—has increased from 35 during Prime Day last June to 47 recently.

Researcher Kim stated, “Although Amazon offers lower profitability compared to wholesale sales, securing brand recognition is essential to expect future growth in wholesale sales.”

He added, “While second-quarter earnings are expected to be solid, stable performance and attractive valuation will come into focus in August,” noting, “It is also positive that cosmetics exports to the U.S. in July reached $239.44 million, up 9.5% from the previous month and 42.6% year-over-year, marking a record high on a monthly basis.”