1. What Happened with Amorepacific Holdings’ Stock Disposal?

Amorepacific Holdings disposed of 3,738 common shares (approximately KRW 100 million) for employee bonuses and long-term service awards. While the disposal scale is small, investors should pay close attention considering the current market conditions and the company’s fundamentals.

2. Why Did They Dispose of Treasury Stock?

The official reason is employee compensation. This has the positive aspect of encouraging and motivating employees who have contributed to the company’s growth. However, some investors might interpret the disposal as a precursor to a stock price decline. This concern can be amplified, especially given the current high uncertainty in the stock market.

3. So, What Will Happen to the Stock Price?

The direct impact is expected to be minimal due to the small size of the disposal. However, there is a possibility of a positive synergistic effect coupled with the announcement of strong Q3 earnings. On the other hand, negative factors such as the sluggish Chinese market, rising raw material prices, and the possibility of a global economic recession should also be considered.

  • Positive Factors: Improved performance of Amorepacific subsidiary, successful overseas market expansion, Cosrx acquisition effect
  • Negative Factors: Sluggish Chinese market, rising raw material prices, possibility of a global economic recession

4. What Should Investors Do?

Rather than reacting emotionally to short-term stock price fluctuations, it is crucial to develop an investment strategy based on Amorepacific Holdings’ long-term growth potential. It’s advisable to monitor the company’s future response strategies (regarding raw material prices and economic recession) and conduct additional research on the Chinese market situation and changes in consumer sentiment.