Amorepacific Corporation Accelerates Growth with Derma and Hair Care... Target Price of 170,000 Won

[Financial News] Hana Securities Co., Ltd. maintained its 'Buy' rating and a target price of 170,000 won, stating that Amorepacific Corporation is reorganizing its business structure, which had hindered profitability, and strengthening its growth foundation centered on derma and hair care.
Park Jong-dae, an analyst at Hana Securities Co., Ltd., stated in a report on the 14th, "Amorepacific Corporation has kept most of what it said at Investor Days over the past two years," adding, "It has nearly completed the restructuring of profitability-hindering factors such as inventory, distribution, and resellers."
Amorepacific Corporation has improved both growth and profitability by balancing its domestic and international businesses and reducing its dependence on specific brands. At the recent Investor Day, it presented derma, hair care, and strategies for the fiscal year (BY) 2027 as key themes. The fiscal year of Investor Day runs from July to June of the following year, and BY 2027 runs from July of this year to June of next year.
The combined sales of the derma brands AESTURA and ILLIYOON in 2026 increased by 67% year-on-year and exceeded 400 billion won. The two brands aim for combined sales of 500 billion won in 2027 and 1 trillion won in 2030.
Researcher Park stated, "The derma category is currently a key trend in the global cosmetics industry," and assessed, "We view AESTURA's next key product as a derma sunscreen."
AESTURA plans to launch more than two new derma sunscreen products, and ILLIYOON is expanding its product range from body products to facial products.
Hair care was also identified as a key sector to drive performance growth. Amorepacific Corporation's hair care division recorded sales of approximately 490 billion won and an operating profit margin of 7–8% in 2026. It aims to achieve sales of 1 trillion won and an operating profit margin of 14–15% by 2030.
Researcher Park analyzed, "Hair care is emerging as a core growth category for Amorepacific Corporation," adding, "Ryeo in China, LABO-H in the U.S., and Miseenscène in Brazil are leading the growth." The company plans to expand investments in the U.S. and Latin America based on profitability in Korea and Japan.
Amorepacific Corporation has set a target of 10% growth in consolidated sales and an operating profit margin of 11–12% by 2027. Regional sales growth targets are 20% in North America and 30% each in Europe, the Middle East, and Africa (EMEA) and Japan. In China, the company plans to continue channel and brand restructuring and drive a turnaround to sales growth starting in 2028.
Researcher Park explained, "Amorepacific Corporation has declared 2027 as a period for full-scale scaling up," adding, "It cited strengthening social platforms as a key task."

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