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Amorepacific Soars 7% on Strong Q3 Earnings—What's Next for K-Beauty Giant?

Amorepacific shares surged significantly following impressive third-quarter earnings. The company reported a 41% jump in operating profit to 91.9 billion won. Analysts are optimistic about continued growth from the company's US and European markets. Meanwhile, Innotech made a spectacular market debut while LIG Nex1 shares fell despite strong results.

Key Points: Amorepacific Shares Surge After Robust Third Quarter Earnings

  • Amorepacific shares surged 7% following strong Q3 earnings results
  • Operating profit jumped 41% to 91.9 billion won amid 4% sales growth
  • Samsung Securities analyst expects continued US and European brand growth
  • Innotech made explosive Kosdaq debut, soaring nearly 300% from IPO price
2 min read

K-beauty giant Amorepacific soars on solid Q3 earnings

Amorepacific shares jump 7% as Q3 operating profit surges 41% to 91.9 billion won, driven by strong US and European brand growth.

"Growth of its own brands in the United States and Europe is expected to continue driving performance into the fourth quarter. - Samsung Securities Analyst Lee Ga-young"

Seoul, November 8

South Korean cosmetics company Amorepacific Co. saw its shares surge Friday morning, following upbeat market assessments of its robust third-quarter earnings, as per a report by Pulse, the English service of Maeil Business News Korea.

Amorepacific shares were trading at 126,900 won (USD 86) as of 9:06 am on Friday, up 7 per cent from the previous session.

Amorepacific announced that its operating profit rose 41 per cent to 91.9 billion won in the third quarter. Sales climbed 4 per cent to 1.02 trillion won.

"The results were solid and met expectations," said Samsung Securities Analyst Lee Ga-young. "Growth of its own brands in the United States and Europe is expected to continue driving performance into the fourth quarter.

Meanwhile, Innotech made a strong Kosdaq debut, soaring nearly fourfold from its initial public offering (IPO) price.

Shares of the precision industrial equipment maker were trading at 57,300 won as of 9:13 a.m., up 289.8 per cent from its offering price of 14,700 won. Earlier, the stock jumped 300 per cent to 58,800 won.

Innotech develops reliable environmental testing equipment used to verify product durability under extreme conditions, such as temperatures from minus 70 degrees Celsius to 250 degrees Celsius and high humidity, critical for semiconductor and display manufacturing.

The company plans to expand into semiconductors, secondary batteries, and automobiles as part of its growth strategy.

LIG NEX1 Co., on the other hand, saw its shares plunge despite reporting better-than-expected third-quarter results.

The stock was trading at 424,000 won as of 9:10 a.m., down 11.85 per cent, after opening 6.24 per cent lower at 451,000 won.

LIG Nex1's operating profit surged 72.5 per cent to 89.6 billion won, with sales up 41.7 per cent to 1.05 trillion won.

However, sentiment weakened after Mirae Asset Securities Co. cut its target price from 570,000 won to 510,000 won while maintaining a "neutral" rating, citing slower-than-expected progress despite solid fundamentals.

Analyst Byeon Yong-jin of iM Securities Co. also downgraded his recommendation from "Buy" to "Hold," noting limited short-term momentum in new orders and performance.

Shares of Amorepacific finished 6.66 per cent higher at 126,500 won on Friday. Innotech closed at 58,800 won and LIG Nex1 at 401,500 won.

- ANI

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Reader Comments

R
Rohit P
Impressive numbers! 41% profit growth is no joke. Wish Indian FMCG companies could learn from their global expansion strategy. Our companies need to think beyond domestic markets.
A
Ananya R
While the growth is impressive, I hope Amorepacific considers more sustainable packaging. So much plastic waste from beauty products these days. Companies should lead in eco-friendly initiatives 🌱
S
Sarah B
Interesting to see Innotech's 300% jump! The semiconductor testing equipment market is booming globally. Perfect timing for their expansion plans. Smart strategic move.
V
Vikram M
LIG Nex1's case shows how sensitive stock markets can be. Despite good fundamentals, analyst downgrades can tank the stock. Retail investors need to be careful and do their own research.
K
Kavya N
Korean beauty standards are quite different from Indian preferences. I wonder if they'll customize products for Indian skin tones and climate conditions. That could be a huge market opportunity here!

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