NH Investment & Securities said on the 7th that APR has the most overwhelming growth rate in the cosmetics industry. It also analyzed that APR is expected to show strong performance in the second half, enough to overshadow the impact of U.S. tariffs. The investment opinion remains 'buy,' while the target price has been raised from 170,000 won to 260,000 won. APR's closing price the previous day was 208,500 won.
APR recorded consolidated revenue of 327.7 billion won and operating profit of 84.6 billion won in the second quarter of this year, surpassing consensus expectations. Revenue and operating profit increased by 111% and 202%, respectively, compared to the same period last year.
In particular, the beauty institutional sector recorded revenue of 317.1 billion won, an increase of 127% compared to the same period last year, which according to NH Investment & Securities is the highest quarterly revenue ever.
Jeong Ji-yoon, a researcher at NH Investment & Securities, analyzed that "APR has the most overwhelming growth rate within the cosmetics industry, and profit leverage will continue through the expansion of offline outlets by country and business-to-business (B2B) transactions."
He later noted, "It is true that the growth rate of the device institutional sector is disappointing, but new product launches in the second half are expected to show a growth transition," adding that APR has a mid to long-term growth story with plans for commercialization of skin boosters and medical beauty devices by 2027 to 2028. He also stated that the strategy for expanding market share is valid.