Yuanta Securities Korea evaluated that if APR's expansion into overseas markets and the launch of new products lead to improved performance, there is a strong potential for stock price increase. Yuanta Securities Korea maintained a 'buy' investment opinion on APR, raising the target price from 66,000 won to 77,000 won. The closing price of APR on the previous trading day was 58,800 won.
Lee Seung-eun, a researcher at Yuanta Securities Korea, explained that "APR has obtained European cosmetics certification (CPNP), actively entering the 27 countries of the European Union (EU) and is securing new distribution channels to expand market share."
He also said, "In the U.S. market, we see strength in online channels such as Amazon, and we plan to grow B2B (business-to-business) sales while simultaneously entering offline markets."
In the fourth quarter of last year (October to December), APR recorded revenue of 244.2 billion won and operating profit of 39.6 billion won, marking the highest figures in its history. This represents a 61% and 15% increase compared to the same period last year, respectively, meeting market expectations (operating profit of 38.9 billion won).
This researcher analyzed that "Sales in the U.S. market increased by 131% year-on-year to reach 69 billion won, continuing growth centered on B2B and Amazon," and "In the European market, we obtained CPNP certification, actively entering Bulgaria, Slovakia, and Greece, where B2B sales exploded by 1,171% to 30 billion won."
In addition, he explained that "Revenue in the cosmetics sector grew rapidly, increasing 103% year-on-year to 116.3 billion won, with the Mediheal brand accounting for 96.9 billion won, establishing itself as a core growth driver." However, he noted that the increase rate in operating profit was relatively low compared to the revenue growth rate due to increased shipping costs, selling commissions, and inventory provisions stemming from expansion in overseas sales.
According to this researcher, the advertising and promotional expenses accounted for about 17% of revenue in the fourth quarter of last year, while shipping expenses were estimated to be in the high 8% range. North American advertising and promotional expenses accounted for about 20 to 25% of the total, with profit margins by sector showing 22% for devices and high 10% for cosmetics.
APR has set external growth as its top priority goal this year. The target revenue is set at 1 trillion won, with operating profit projected between 170 billion won to 180 billion won.
This researcher stated, "Management has indicated that achieving the target is possible based on a rolling basis for the first quarter," adding that there are plans for overseas B2B sales to grow threefold, to enter more than 3,000 offline stores in Japan, and to launch new beauty device products while preparing for the medical device sector. He also noted that "We plan to enhance shareholder value through stock buybacks and cancellations, and improve the deficits in the fashion sector through efficient inventory management."