APR: Demand remains strong despite currency headwinds; target price of 550,000 won

[Financial News] On the 22nd, IBK Investment & Securities maintained its “Buy” rating and target price of 550,000 won for APR, expecting strong growth to continue even during the off-season.
IBK Investment & Securities forecast consolidated third-quarter revenue of 801.4 billion won and operating profit of 170.5 billion won for APR. These figures represent year-over-year growth of 107.6% and 77.3%, respectively.
“We expect strong growth to continue as Medicube’s brand recognition expands, particularly in the United States and Europe,” said Cho Gyeong-jin, an analyst at IBK Investment & Securities. “However, with the United States and Europe accounting for 70% of revenue, growth compared with the previous quarter will slow due to the won’s appreciation.”
Cho added that expanded offline distribution in Europe would offset fluctuations in online-based sales caused by major shopping events, and that shipping and logistics costs would also improve if exports to Europe stabilized.
The stock has recently fallen amid concerns about the impact of exchange rates, among other factors, but the view is that growth prospects are even more promising.
Cho said that 13 Medicube products ranked among the top 100 bestsellers in the overall U.S. beauty category during Amazon Big Deal Days, while in Europe an average of at least 16 products per country made the top 100. “No K-beauty brand has yet emerged with global consumer demand as strong as APR’s,” Cho said.
Cho added, “We expect consumer touchpoints to expand further through year-end shopping-season promotions and offline expansion.”
[email protected] Seo Min-ji Reporter