Hana Securities on the 9th said APR is expected to continue explosive earnings growth in the second quarter. It initiated coverage with a "Buy" rating and a target price of 5.1 million won. APR's previous closing price was 366,000 won.
APR earlier posted, on a consolidation basis for the first quarter of this year, revenue of 593.4 billion won and operating profit of 152.3 billion won. Those figures were up 123% and 173.7%, respectively, from a year earlier, beating market expectations.
In addition, revenue in the cosmetics segment came to 452.6 billion won, up 174% from a year earlier, and this revenue was analyzed to have driven the earnings improvement. Although marketing and shipping costs increased, the rise in revenue eased the fixed-cost burden, lifting the operating margin to 25.7%. By region, revenue rose more than 100% in the United States, Japan and Europe.
Park Jong-dae, an analyst at Hana Securities, said, "This kind of explosive growth seems likely to continue in the second quarter," adding, "In the United States, the end of the Ulta Beauty contract is accelerating entry into other major retailers."
APR entered all Target stores in April, and it has confirmed entry into Walmart and Costco in the second to third quarters. The effect of Amazon Prime Day being moved up to June is also expected, and European revenue is projected to be much larger than in the first quarter.
Regarding Medicube, APR's key brand, it was explained that global demand currently outstrips supply.
Park said, "A supply shortage centered on the Zero Pore Pad has continued for several quarters," adding, "If bottlenecks ease in the second half on the back of capacity additions in original design manufacturing (ODM) and container facilities, revenue could once again change its leading digit."
APR has hinted at the possibility of revenue in the high 2 trillion won range as it mentions an upward revision to its 2026 annual guidance.
Accordingly, Hana Securities estimated APR's second-quarter revenue will rise 100% from a year earlier and operating profit will increase 101% to 170.4 billion won.
Park said, "Upward revisions to earnings estimates are continuing as overseas expansion broadens across regions, categories and channels," adding, "It is still difficult to gauge how far revenue will increase."