LS Securities on the 4th projected that APR's operating profit will grow stepwise through distribution channel expansion, as high-growth online sales in the United States and Japan continue. It also raised its target price to 400,000 won. APR's previous trading day closing price was 285,500 won.
LS Securities estimated APR's sales this year at 2.5 trillion won and operating profit at 581.8 billion won. That is up 62% and 59%, respectively, from a year earlier. For the first quarter, it projected sales of 562.3 billion won and operating profit of 134.7 billion won, up 111% and 147%, respectively, from the same period last year.
Researcher Cho Eun-ae at LS Securities said, "In the United States, the expansion of SKUs listed at ULTA and rising brand awareness are continuing, and in Japan's offline market, the increase in sales per store is clear," and added, "B2B sales centered on Europe are also continuing to grow quarter over quarter, so profit growth on a quarterly basis should be possible despite increased marketing expense."
The assessment is that growth is continuing in the United States even during the off-season. Cho said, "Even though January–February is an off-season period, sales of top-ranked, steady-seller products within Amazon's Top 100 are holding firm," and added, "With rankings rising for existing mid- to lower-tier Top 100 products, the trend is exceeding the average monthly sales of the peak season in the fourth quarter of last year."
She also cited the expansion of offline channels as a positive factor. Cho said, "Even though it is still the early stage of listings at ULTA in the second quarter, we are seeing the effects of rising sales per SKU and expanding listed items, sustaining quarter-over-quarter growth," and projected, "In the first half of next year, APR plans to move beyond the existing ULTA-exclusive structure and add listings at two to three major main offline channels, so high growth in offline sales on a quarterly basis is expected."
Japan is also assessed to have entered a growth phase. Cho said, "Sales per store are becoming visible at the offline shops entered this year, and considering that a competitor on the core platform Qoo10 is recording a level similar to APR's total sales with just the skincare category alone, there is ample room for additional growth in the skincare segment."
Regarding the European market, it was assessed as a phase in which the initial penetration speed is progressing rapidly based on brand awareness accumulated in the United States. Cho said, "In the United Kingdom, which APR entered in the fourth quarter, it ranked No. 1 in toner category sales, and in Germany, even without separate large-scale marketing, major products are ranking No. 1–2 in sales," and analyzed, "A trickle-down effect is appearing as the brand awareness built in the United States spreads to the global market."