Aurora is experiencing strong gains as the securities industry anticipates record earnings.
According to the Korea Exchange, as of 2:26 PM on June 17, Aurora's shares rose by 940 won (5.30%) to 18,690 won compared to the previous trading day.
Analysts attribute the improved investor sentiment to expectations of continued earnings growth driven by the expansion of its U.S. operations and improved financial structure.
Earlier, NH Investment & Securities released a report forecasting that Aurora's earnings growth and reduced financial burdens could lead to a reevaluation of its valuation.
NH Investment & Securities noted that the U.S. market, which accounts for about 75% of Aurora's revenue, continues to grow. The company's U.S. sales reached 224.9 billion won last year, a 25% increase from the previous year, and rose by 28.4% to 74 billion won in the first quarter of this year.
Kang Kyung-geun, a researcher at NH Investment & Securities, stated, "The expansion of our proprietary intellectual property brand 'Palm Pals' and the acquisition of the doll brand 'Mary Meyer' are driving growth in our U.S. business."
Kang further projected that with favorable exchange rates, strong sales in the U.S., and growth from the global expansion of Palm Pals, Aurora's revenue is expected to reach 410.2 billion won and operating profit 65.8 billion won this year, marking increases of 25.0% and 47.9%, respectively, compared to the previous year, achieving record results.
He added, "If the strong earnings momentum continues and the improvement in financial structure through the sale of investment properties materializes, a reevaluation of corporate value is also possible."
* This article has been translated by AI.
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