DB Securities said on the 26th that Amorepacific is entering the final stage of its overhaul and is expected to see meaningful earnings growth continue from next year. It maintained a Buy rating and a target price of 150,000 won. Amorepacific's previous trading day closing price was 120,500 won.
DB Securities forecast Amorepacific's fourth-quarter consolidation sales at 1.1217 trillion won and operating profit at 98.1 billion won. Those figures are up 2.8% and 25%, respectively, from a year earlier.
Heo Jena, a DB Securities researcher, said, "This quarter, Amorepacific carried out workforce streamlining focused on inefficient domestic channels," and added, "Although there were likely one-off expenses related to this, excluding those, we expect results to be in line with the consensus (market average forecast)."
In particular, it was expected that in 2026 Amorepacific's overseas cosmetics business will show broad-based sales growth centered on North America and Europe.
Heo said, "While Laneige continues to grow in the United States, incubation for the AESTURA brand is set to begin in North America and Europe."
In China, it plans to more actively reduce low-efficiency Sulwhasoo department store counters by the first half. As a result, additional fixed-cost savings were projected to be possible.
Heo explained, "If brand incubation for Laneige in the West begins and those results become visible in Asia as well, we expect to secure meaningful growth drivers."
Meanwhile, Cosrx said it has entered a gradual recovery phase from the fourth quarter of this year, with the year-over-year sales decline narrowing to the single-digit level.
Heo said, "Restructuring of inefficient domestic channels with heavy fixed-cost burdens and of the offline business in China will be completed in the first half of next year," and analyzed, "If AESTURA takes hold in the West in 2026 and Laneige in China, the global brand portfolio will diversify and meaningful earnings growth will continue."