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(Photo=AmorePacific) |
[Alpha Biz= Reporter Kim Minyoung] KB Securities raised its target price by 11% from 37,000 won to 41,000 won on the 10th, saying that its subsidiary (AmorePacific), which has increased its share of AmoreG, is expected to perform well. The investment opinion remained 'buy'.
"Amorepacific's share of AmoreG's operating profit is expected to rise to more than 90% again thanks to the effect of KOSRX's incorporation into consolidated subsidiaries," KB Securities said. "The stock price is likely to be linked to the performance trend of 'Amorepacific'."
"Thanks to the excellent performance momentum of 'CoRX', AmoreG stock price is expected to continue its upward trend," KB Securities said. "We lowered the operating profit estimate in 2024 by 2% from 485 billion won to 475 billion won, but the operating profit estimate in 2025 will be raised by 15% from 621.1 billion won to 712 billion won." Most of the upward estimates for 2025 are due to the upward estimates of earnings by its subsidiary AmorePacific.
"The first-quarter sales of AmorePacific, a major subsidiary, fell 0.2% year-on-year to 911.5 billion won, and operating profit rose 13% to 72.7 billion won," KB Securities said. "The operating profit of the domestic cosmetics sector is a result of cost-efficiency efforts and the growth of the US corporation."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
