“Profitability below expectations” ... APR shares fall as brokerages cut price targets in succession [Stock NOW]

[Financial News] APR is down nearly 14% early in the trading session. With the KOSPI falling at least 4% and slipping to the 6,000 level, APR’s decline is particularly pronounced.
According to the Korea Exchange, as of 9:31 a.m. on the 13th, APR shares were trading on the KOSPI at 305,000 won, down 47,500 won (13.35%) from the previous day. At one point during the session, they fell as low as 292,500 won.
Analysts say that despite strong cosmetics export results, APR’s profitability is likely to fall short of market expectations due to the lower exchange rate and rising logistics costs in Europe.
Daol Investment & Securities cut its target price for APR that day by 10.7%, from 560,000 won to 500,000 won. Park Jong-hyun, an analyst at Daol Investment & Securities, said, “APR’s operating profit for the third quarter of this year is forecast to rise 95.3% year on year to 187.7 billion won, but come in about 5% below the market estimate of 197.5 billion won.” He added, “A higher cost ratio due to the stronger won, along with increased air and inland transportation costs in Europe, will weigh on profitability.”
MERITZ SECURITIES CO., LTD. also lowered its target price that day by 5.5%, from 550,000 won to 520,000 won. Park Shin-ae, an analyst at MERITZ SECURITIES CO., LTD., said on the 13th, “Third-quarter revenue is expected to meet market expectations, but operating profit is forecast to fall short by 15%.” She added, “With the U.S. and Europe together accounting for nearly 70% of revenue, a negative impact from the won’s recent strength is unavoidable.”
KB Securities also said APR’s third-quarter operating profit is expected to fall 14.1% short of market expectations.
[email protected] Joo Won-gyu Reporter