1. What Happened? Q1 Earnings and August 1st Announcement Analysis
Amorepacific Holdings recorded consolidated revenue of KRW 1.1648 trillion and operating profit of KRW 128.9 billion in Q1 2025, a 15.7% and 55.2% year-on-year increase, respectively. However, the August 1st announcement revealed factors that could cause stock price volatility, such as treasury stock disposal and the withdrawal of the HLB affiliate merger.
2. Why Does it Matter? Analyzing Positive and Negative Factors
- Positive Factors: Improved domestic performance, overseas business expansion, Cosrx acquisition effect
- Negative Factors: Continued sluggishness in the Chinese market, potential stock price decline due to treasury stock disposal, increased uncertainty due to HLB merger withdrawal, volatility in raw material prices and exchange rates, concerns about a global recession
3. So What Should I Do? Investment Strategy
Investors should be wary of short-term stock price volatility and consider the following:
- Confirm and analyze additional information regarding the August 1st announcement
- Evaluate the effectiveness of the Chinese market recovery strategy
- Review risk management strategies for external variables such as exchange rates, raw material prices, and the global economic recession
- Analyze the earnings outlook for major subsidiaries
4. Investor Action Plan
Due to lack of information, it’s difficult to provide a definitive investment direction. It is crucial to make cautious investment decisions after confirming additional information. Specifically, be sure to check for updates regarding the reasons for the treasury stock disposal, the background of the HLB merger withdrawal, and the Chinese market recovery strategy.