[Edaily Reporter KIM YOON-JEONG ] IBK Investment & Securities projected that AMOREPACIFIC CORPORATION(090430)’s profitability will improve, driven by KosRX’s turnaround and the growth of its Western and derma brands. The firm initiated coverage with a “Buy” rating and a target price of 200,000 won.

On the 31st, Jo Gyeong-jin, an analyst at IBK Investment & Securities, stated, “The significant increase in sales in Western markets and the growth of derma brands are encouraging,” adding, “We believe the rationale for a discount has weakened as the operating profit margin has stabilized in the 10% range.”
AMOREPACIFIC CORPORATION owns approximately 30 skincare brands, including Sulwhasoo, Laneige, Innisfree, Estra, and COSRX. Domestically, the company is shifting its sales channels from duty-free shops and brick-and-mortar stores to online platforms and multi-brand stores (MBS), while overseas, it is transitioning from traditional offline distribution networks to e-commerce platforms.
In particular, attention was drawn to the recovery of COSRX, which is driving sales in Western markets. Although COSRX’s sales decreased by 22.6% from 589.9 billion won in 2024 to 456.3 billion won in 2025, the effects of its brand relaunch began to appear in the fourth quarter of last year following adjustments to its distribution structure and pricing policies. In the fourth quarter of last year, revenue reached 152.3 billion won and operating profit stood at 38.1 billion won, representing year-over-year increases of 10.4% and 25.7%, respectively, and the company maintained double-digit growth through the second quarter of this year.
Analyst Cho commented, “Unlike in the past, when the company was highly dependent on a single product, it has successfully turned around its business by diversifying its SKUs with new lines such as the RX line.” He projected that COSRX’s revenue this year would reach 589.5 billion won, a 29.2% increase year-over-year. As a high-margin brand with an operating profit margin in the 20% range, it is expected to contribute to the company’s overall profitability.
The reduction in the burden of its China operations was also viewed positively. Analyst Cho stated, “The reasons the company had been trading at a discount compared to its peers were its exposure to China and profit volatility. However, the share of Greater China in overseas sales has shrunk to 10.6%, and with the restructuring complete, downside risk to earnings is limited.”