Cosmetics manufacturer APR is experiencing a decline in early trading. This drop is attributed to concerns over reduced profitability following the recent decrease in the won-dollar exchange rate.
As of 10:03 a.m. on November 9, APR shares were trading at 245,000 won, down 10,500 won (4.31%) from the previous trading day, according to the Korea Exchange.
The decline in APR's stock price is believed to be influenced by worries about its performance due to the recent drop in the won-dollar exchange rate, which fell to 1,360 won, a 3.6% decrease compared to three months ago. With 94% of APR's total sales coming from overseas, the strengthening of the won could negatively impact its revenue and profitability when converted to won.
Analysts are also cautious about the potential for reduced profitability. Securities firms that released reports this month have all adjusted their target prices downward. The revised target prices include: DB Securities at 400,000 won, Korea Investment & Securities at 450,000 won, KB Securities at 450,000 won, Samsung Securities at 400,000 won, Yuanta Securities at 435,000 won, and IBK Investment & Securities at 500,000 won.
In a report dated November 4, IBK Investment & Securities noted, "Profitability is declining due to the impact of the strong won on exchange rates," and adjusted its target price from 550,000 won to 500,000 won, reflecting a 9% decrease due to the profitability burden from exchange rate fluctuations and adjustments to performance forecasts.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.