APAR is experiencing a strong surge of nearly 9% amid expectations of improved performance. Despite concerns over export profitability due to the strengthening won, the company’s cosmetics sales in the U.S. and Europe are showing robust growth, drawing renewed attention to its overseas business potential.
According to the Korea Exchange, as of 10:46 a.m. on October 16, APAR shares rose by 26,500 won (8.89%) to trade at 324,500 won. The stock opened at 300,500 won and briefly climbed to 337,000 won in early trading.
Recent concerns have emerged that the strengthening won could negatively impact the sales and profitability of export companies. However, the strong performance of cosmetics sales in key markets has led to increased expectations for APAR’s financial results, which is believed to have driven the stock price higher.
Kim Myung-joo, a researcher at Korea Investment & Securities, noted in a report that “this week’s adjustment in APAR’s stock price is an overreaction.” He highlighted that APAR’s U.S. sales during Amazon’s Big Deal Days event increased by 85% compared to the same event last year, with positive results also reported in Europe.
The growth in the European market is also seen as a positive factor. Kwon Woo-jung, a researcher at Kyobo Securities, stated in a recent report that “the rapid increase in European demand is encouraging,” noting that the number of products from Mediheal entering the Amazon B&P Top 100 in five European countries rose from 38 in March to 50 in June and 80 in October. Given that the European business began in earnest this year, these initial results are very promising.
He added, “In the future, Europe will have multiple factors for improving profitability, including reduced air freight costs due to business stabilization, lower inland transportation costs from securing regional logistics hubs, and an increase in offline sales.” He also mentioned that the U.S. market is rapidly expanding its offline presence.
* This article has been translated by AI.
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