DAISHIN SECURITIES assessed that APR is likely to see profit-taking after the second quarter earnings announcement, as expectations for performance and valuation have risen excessively in a short period. Therefore, it downgraded its investment opinion from 'Buy' to 'Market Perform'. However, it raised the target price from 82,000 won to 190,000 won. The previous closing price of APR was 174,600 won.
DAISHIN SECURITIES forecasted that APR will record sales of 286.9 billion won and operating profit of 58.7 billion won in the second quarter of this year, which represent increases of 85% and 110% respectively compared to the same period last year, and noted that this is in line with consensus.
Han Song-hyup, a researcher at DAISHIN SECURITIES, explained the downgrade of the investment opinion for the next six months, saying, "The main reason is the excessively high expectations for performance and valuation that have risen in a short period." He added, "The heightened expectations and valuations will limit the stock price increase after the second quarter earnings announcement and increase the likelihood of profit-taking."
He predicted that APR's growth trend will enter a stabilization phase in the second half of the year. A researcher explained, "This is because the revenue scale upgraded through channel expansion last year serves as a base," adding, "While it is a positive sign that they have successfully established themselves in the market, it also means that explosive growth as seen in the past is unlikely to be expected."
He continued, "From the perspective of the medium- to long-term portfolio, the view that it remains a core growth stock has not changed," and advised that it is recommended to increase the weighting each time a short-term adjustment occurs.