LS Securities Backs Amorepacific as North America Sales Surge

LS Securities has reaffirmed its support for Amorepacific, citing a notable surge in sales within the North American market. The firm has set a target price of 190,000 won for the cosmetics giant, maintaining a 'buy' rating.

According to LS Securities, Amorepacific's consolidated sales for the third quarter of this year are expected to reach 1.1413 trillion won, representing a 12.2% increase from the previous year. This growth is attributed to a steady domestic business performance and increasing contributions from new brands in overseas markets.

Analyst Orin-a noted that the domestic sales growth rate is estimated at around 13.1% year-over-year. The performance is bolstered by multi-brand shops and duty-free channels, alongside a 10% growth in e-commerce sales.

In North America, Amorepacific is projected to experience a sales growth of approximately 23%, driven by brands like COSRX and Innisfree. However, increased marketing expenses ahead of Amazon Prime Day may impact short-term profitability.

Overall, the diversified growth structure of Amorepacific, particularly in social and e-commerce channels, is expected to enhance its market position as new brands gain traction in international markets.