(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Amorepacific's Stock Falls Sharply After Q2 Earnings Miss Market Expectations

On August 7, Amorepacific's stock fell by 24.91% to close at 124,500 won, marking its largest single-day drop ever. The company's preferred shares also declined by 21.37%.

The dramatic drop in stock value led to a decrease in Amorepacific's market capitalization from 9.698 trillion won to 7.282 trillion won, a reduction of approximately 2.4 trillion won.

The sharp decline in stock price follows the release of the company's Q2 earnings report, which revealed a 29.5% year-over-year drop in operating profit to 4.2 billion won (preliminary). This figure is 94% below market expectations.

In response to the disappointing results, several brokerage firms have lowered their target prices for Amorepacific. Korea Investment & Securities reduced its target from 240,000 won to 200,000 won, while Hyundai Motor Securities cut its target from 230,000 won to 210,000 won. Additionally, Mirae Asset Securities and NH Investment & Securities both lowered their targets from 240,000 won to 200,000 won, and Kiwoom Securities and Hana Securities adjusted their targets from 220,000 won to 170,000 won and 190,000 won, respectively.

 

 

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