Kiwoom Securities forecasts that APR's revenue will more than double this year compared to last year, driven by strong growth in the North American and European markets. Despite the inevitable profitability pressure from the strengthening won in the second half of the year, the firm believes that expanding offline channels and brand competitiveness will sustain long-term growth. The target stock price has been raised from 360,000 won to 500,000 won.
In a report released on October 13, Kiwoom Securities analyst Jo So-jung stated, "APR's revenue for 2026 is projected to reach 3.064 trillion won, a 101% increase from the same period last year," adding that growth in North America and Europe will drive overall performance.
North American revenue is expected to reach 1.4507 trillion won this year, marking a 138% increase from the previous year. Approximately 20% of North American sales in the first half of the year came from offline channels, thanks to partnerships with major retailers like Target and Walmart, with further expansion anticipated in the second half through additional channels such as Costco and CVS.
Jo noted, "As sales at Target are rapidly increasing, online sales are also growing. The expansion of offline channels will continue to support North American growth."
The growth in the European market is expected to be even more pronounced. Kiwoom Securities predicts that APR's European revenue will reach 597.3 billion won this year, a 431% increase from the previous year. The analysis highlights rising brand rankings on Amazon and an increase in direct transactions with major retailers like Boots and Douglas.
With a higher proportion of direct transactions with retailers, profitability is also expected to improve. Next year, as offline channels expand beyond the UK into other European regions, revenue is projected to increase by 34% from this year to 4.112 trillion won. There is potential for further upward revisions to performance forecasts depending on the speed of channel entry.
However, the strengthening won in the second half of the year is seen as a short-term burden. Given APR's high proportion of overseas sales, a decline in the won-dollar exchange rate could negatively impact revenue and operating profit margins when converted to won.
Jo stated, "The strengthening won in the second half will inevitably pressure both revenue and operating profit margins," but added that the increase in transportation and marketing costs due to entry into new markets in Europe and South America is a necessary investment to gain market share. She emphasized, "The competitiveness to increase sales volume and expand revenue remains strong," and assessed that the exchange rate burden is likely to be temporary.
The valuation is also considered low relative to growth potential. APR's projected earnings per share (EPS) growth rate for 2027 is about 36%, which is high compared to global beauty competitors, yet the expected price-to-earnings ratio (PER) is around 19 times.
Jo concluded, "Considering the high growth potential in the North American and European markets, the diversification of sales channels, and brand competitiveness, the current valuation is undervalued relative to its growth potential."
In a report released on October 13, Kiwoom Securities analyst Jo So-jung stated, "APR's revenue for 2026 is projected to reach 3.064 trillion won, a 101% increase from the same period last year," adding that growth in North America and Europe will drive overall performance.
North American revenue is expected to reach 1.4507 trillion won this year, marking a 138% increase from the previous year. Approximately 20% of North American sales in the first half of the year came from offline channels, thanks to partnerships with major retailers like Target and Walmart, with further expansion anticipated in the second half through additional channels such as Costco and CVS.
Jo noted, "As sales at Target are rapidly increasing, online sales are also growing. The expansion of offline channels will continue to support North American growth."
The growth in the European market is expected to be even more pronounced. Kiwoom Securities predicts that APR's European revenue will reach 597.3 billion won this year, a 431% increase from the previous year. The analysis highlights rising brand rankings on Amazon and an increase in direct transactions with major retailers like Boots and Douglas.
With a higher proportion of direct transactions with retailers, profitability is also expected to improve. Next year, as offline channels expand beyond the UK into other European regions, revenue is projected to increase by 34% from this year to 4.112 trillion won. There is potential for further upward revisions to performance forecasts depending on the speed of channel entry.
However, the strengthening won in the second half of the year is seen as a short-term burden. Given APR's high proportion of overseas sales, a decline in the won-dollar exchange rate could negatively impact revenue and operating profit margins when converted to won.
Jo stated, "The strengthening won in the second half will inevitably pressure both revenue and operating profit margins," but added that the increase in transportation and marketing costs due to entry into new markets in Europe and South America is a necessary investment to gain market share. She emphasized, "The competitiveness to increase sales volume and expand revenue remains strong," and assessed that the exchange rate burden is likely to be temporary.
The valuation is also considered low relative to growth potential. APR's projected earnings per share (EPS) growth rate for 2027 is about 36%, which is high compared to global beauty competitors, yet the expected price-to-earnings ratio (PER) is around 19 times.
Jo concluded, "Considering the high growth potential in the North American and European markets, the diversification of sales channels, and brand competitiveness, the current valuation is undervalued relative to its growth potential."
* This article has been translated by AI.
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