Daishin Securities lowered its target price of AmorePacific to 280,000 won on the 15th following a downward revision of its earnings estimate in China. The closing price of the day before was 191,500 won. Investment opinion 'buy' was maintained.
Daishin Securities posted sales of 1.1412 trillion won and operating profit of 83.5 billion won in the third quarter of this year. The figure rose 5% and 49% year-on-year, respectively, but was lower than previous estimates.
This is due to the sluggishness of China. Daishin Securities said, "Sales of Sulwhasoo in China (+35%) in the third quarter continue to grow steadily, but China's Innisfree is expected to suffer from a deeper slump than in the second quarter.".
"Domestic duty-free channel sales are estimated to rise 10% and overseas duty-free channel sales are estimated to rise 39%," Daishin Securities said. "Despite slowing market growth, digital channel sales continue to grow in the first half of the year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
