d'Alba Global, whose stock had shown a steep climb, has stalled after a round of correction. The label "the second APR" proved hollow as it moved differently from APR's shares. The reasons appear to be earnings prospects and worries over overhang (potential selling volume).
According to the Korea Exchange on the 28th, d'Alba Global closed at 160,000 won on the KOSPI market on 26th. It fell 35.35% (87,500 won) from the Aug. high of 247,500 won.
d'Alba Global debuted on the KOSPI market on May 22 this year. On the first day of listing, the share price rose more than 60% above the offering price (66,000 won), and it surged on the back of the K-beauty boom. In a little over three months, it jumped 275% from the offering price at the intraday peak.
However, after a single correction in Aug., when the stock dropped more than 33%, d'Alba Global has been sluggish. That contrasts with APR, whose shares are holding near their highs over the same period.
Second-quarter (April–June) results became the tipping point. On a consolidation basis, d'Alba Global posted revenue of 128.4 billion won and operating profit of 29.2 billion won in the second quarter. By operating profit, it fell 19% short of market expectations. In contrast, APR recorded second-quarter revenue of 327.7 billion won and operating profit of 84.6 billion won on a consolidation basis, delivering an "earnings surprise."
The two companies' outlooks for third-quarter (July–September) results also diverge. According to FnGuide, securities firms estimated d'Alba Global's third-quarter revenue and operating profit on a consolidation basis at 130.7 billion won and 31.3 billion won, respectively. The operating profit forecast was revised down 22.5% (9.1 billion won) from three months ago.
Securities firms projected that APR will post third-quarter revenue of 362 billion won and operating profit of 84 billion won on a consolidation basis. They raised the operating profit forecast by more than 50% (28.6 billion won) from three months earlier.
Observers cite the heavy reliance of d'Alba Global's cosmetics brand "d'Alba" on mist and sunscreen products as a cause. As of the first half of this year, the two products accounted for nearly 70% of revenue.
On top of that, domestic distribution revenue, which is relatively more profitable, has declined. Jo So-jung, an analyst at Kiwoom Securities, said, "d'Alba Global's channel mix (distribution share) is expected to worsen," adding, "There is also a possibility that branding investment-related expense will be reflected in the second half, reducing profitability." The push into overseas markets is also said to be slower than expected.
The lockup shares for institutional investors who participated in d'Alba Global's IPO are steadily being released. In Jun., lockups expired for shares equivalent to 19% (2,293,824 shares) of the total, followed by an additional 16.2% (1,955,709 shares) in Aug. Another 10.7% (1,293,136 shares) is scheduled to be released from lockup in Nov.
Whether d'Alba Global can find momentum for a year-end rebound during the shopping season will be key. The company recently moved up its projected timeline for achieving its long-term growth goal of 1 trillion won in annual revenue from 2028 to 2027, expressing confidence in its growth potential.