[Thematic Stocks] APR, despite being praised for a "surprise performance" in the first quarter, still declined... Western markets' growth potential is highlighted

Although the first-quarter performance forecast for APR exceeded market expectations, the stock price remained weak during trading. However, securities firms commented that, based on the high-growth trend centered in the United States and Western Europe, its performance and mid- to long-term brand competitiveness are improving in tandem.

According to data from the Korea Exchange, APR is currently trading at 405,750 won. It has fallen 7,250 won (1.76%) compared to the previous trading day.

In the context of stock price fluctuations, the first-quarter performance forecast was first mentioned. According to comprehensive predictions from securities firms, APR’s consolidated sales for the first quarter of 2026 are expected to be between 5.895 trillion and 5.903 trillion won, with operating profit estimated at 143.6 billion won. This exceeds market consensus expectations by 16%. Compared to the first quarter of 2025, with sales of 266 billion won and operating profit of 54.6 billion won, sales have increased by 122%, and operating profit by 163%.

Some analysts believe that the improved performance is driven by expanded sales in the U.S. and Western Europe. SK Securities pointed out that, in addition to growth in the U.S. market, the performance of Amazon channels in five Western European countries also significantly exceeded expectations, leading to an upward revision of the target stock price from 440k won to 510k won. Hanwha Investment & Securities also raised its target price to 450k won due to increased sales of hot-selling products on the Amazon platform in the U.S. and expansion into new categories. NH Investment & Securities similarly raised its target price from 400k won to 470k won.

In the mid- to long-term, its experiential marketing strategy has also attracted attention. Future Asset Securities commented that, following Hongdae and Island Mountain, the opening of the Seong-su flagship store is strengthening brand promotion targeting foreign tourists. It is reported that foreign sales at the Seong-su store account for 50%, and equipment sales account for 70%.

Previously, APR mainly developed cosmetics brands such as MEDICUBE and APRILSKIN, along with home beauty devices. Cosmetics and beauty departments account for 71% of total sales, while home beauty devices account for 27%. Its vertical integration structure achieved through its own R&D center is also seen as a competitive advantage.

Market evaluations believe that, in the short term, profit-taking sell-offs have put pressure on the stock price, but if Western European channel expansion and the high-end branding strategy driven by devices continue, the growth momentum is expected to persist.