Photo courtesy of Medicube

 

[Alpha Biz= Paul Lee] Shares of APR, a leading South Korean cosmetics firm, have surged to a record high amid strong expectations for overseas growth, driven by robust foreign investor demand.

According to the Korea Exchange, APR closed at an all-time high of KRW 419,500 on February 17, marking an 80% gain year-to-date. Foreign investors have been key drivers of the rally, purchasing more than KRW 1.06 trillion worth of shares this year, ranking third in net buying.

The company’s market capitalization has expanded to KRW 15.7 trillion, increasing by approximately KRW 7 trillion over the same period.

Founded in 2014, APR has achieved rapid growth through its flagship skincare brand Mediheal Cube (Medicube) and beauty device line AGE-R, which have gained significant traction in overseas markets. The company entered major global retail channels last year, including Ulta Beauty in the United States and Don Quijote in Japan.

 

Photo courtesy of Yonhap News

APR reported overseas sales of KRW 1.23 trillion last year, a 207% increase year-over-year, accounting for roughly 80% of its total revenue of KRW 1.53 trillion. The company is expected to maintain strong earnings momentum this year, supported by rising global demand.

South Korea’s cosmetics exports also reached a record high of USD 3.1 billion in the first quarter, up 19% year-over-year, according to government data. APR has recently expanded into European markets, launching products in Sephora stores across France, Germany, and Italy.

Brokerages expect APR to deliver another year of record earnings. Consensus estimates project operating profit to rise 73.4% year-over-year to KRW 633.7 billion, with revenue increasing 66.8% to KRW 2.55 trillion.

Reflecting this outlook, more than 10 brokerage houses—including DB Financial Investment and SK Securities—have raised their target prices this month. The average target price stands at KRW 451,667, implying further upside of around 8% from current levels.

 

 

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