KOSPIHolding Companies002790

AMOREPACIFIC Holdings

₩25,250▼ 2.51%2026-10-02 close

Market Cap

₩1.9T

Turnover

₩3.9B

Volume

160,000 shares

Shares out.

76.5M

PER

17.3×

PBR

0.6×

EPS

₩1,522

Dividend Yield

1.52%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close

Report overview

Double-Digit Margins Arrive, but the Holding Structure Is a Separate Variable

Amorepacific Holdings entered a double-digit operating margin zone in the first half of 2026 on the back of subsidiary Amorepacific's growth in Western markets and Japan plus a domestic channel reshuffle, yet a large share of consolidated profit belongs to non-controlling interests while the smaller beauty brand affiliates and Greater China remain under pressure.

1
Second-quarter 2026 consolidated revenue was KRW 1.2543 trillion and operating profit KRW 122.8 billion, up 14.6% and 53.3% from KRW 1.0950 trillion and KRW 80.1 billion a year earlier.
2
The operating margin was about 11.3% in the first quarter of 2026 and about 9.8% in the second, extending an improvement from 3.8% for full-year 2023 to 8.0% for 2025.
3
Because of the holding-company structure, of KRW 7.2354 trillion in consolidated equity, KRW 3.7533 trillion is non-controlling interests; of KRW 292.2 billion in 2025 consolidated net profit, KRW 124.0 billion was attributable to owners.
4
Derma and Western-market brands such as COSRX and AESTURA led growth, while Innisfree, Etude, Espoir and Amos Professional saw both revenue and operating profit decline amid channel rationalization.
5
Operating cash flow was KRW 629.7 billion in 2025 and the debt-to-equity ratio 21.2%, keeping the balance sheet conservative.

Business structure

Amorepacific Holdings is a holding company under Korean fair trade law, controlling eight subsidiaries including its core unit Amorepacific. Amorepacific, the main subsidiary, runs cosmetics, personal care and health supplement businesses centered on luxury and premium brands such as Sulwhasoo, Hera and Laneige.

Under the holding company sit the beauty brand affiliates that grew historically through road shops, namely Innisfree, Etude, Espoir and Amos Professional, plus the tea business Osulloc.

Most consolidated earnings come from Amorepacific: in the second quarter of 2026 Amorepacific posted consolidated revenue of KRW 1.1759 trillion and operating profit of KRW 117.3 billion, driving group results.

The domestic channel mix is shifting: second-quarter domestic revenue was KRW 610.8 billion with operating profit of KRW 59.6 billion, up 10% and 48% respectively, with online, multi-brand shops and department stores all growing.

IBK Securities noted that domestically the company is moving away from a duty-free and road-shop offline structure toward online and MBS-led growth, while overseas it is deepening penetration of e-commerce platforms rather than relying on offline distribution.

Overseas growth is anchored in the Americas, EMEA, Japan and ASEAN: in the Americas AESTURA grew triple digits via Amazon and Sephora, COSRX grew strongly on its RX line through Amazon and TikTok Shop, and COSRX also led EMEA growth.

By contrast, Greater China revenue fell on channel rationalization even as the company continued restructuring around core channels.

Competition comes simultaneously from large domestic peers such as LG Household and Health Care, fast-growing indie brands, and global luxury houses; on ownership, Chairman Suh Kyung-bae is reported as the largest shareholder with 54.97%, with the founding family holding 64.08% including related parties and minority shareholders 25.70%.

Earnings trend

Quarterly revenue · Operating profit

₩1.1T₩80.1B25Q2₩1.1T₩104.3B25Q3₩1.3T₩54.8B25Q4₩1.2T₩137.8B26Q1₩1.3T₩122.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩4.5T₩271.9B2022₩4T₩152B2023₩4.3T₩249.3B2024₩4.6T₩368B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩1.1T	₩80.1B	7.3%
2025Q3	₩1.1T	₩104.3B	9.4%
2025Q4	₩1.3T	₩54.8B	4.4%
2026Q1	₩1.2T	₩137.8B	11.3%
2026Q2	₩1.3T	₩122.8B	9.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩4.5T	₩271.9B	₩62.2B	6.0%	1.9%	17.1%
2023	₩4T	₩152B	₩119.3B	3.8%	3.6%	17.0%
2024	₩4.3T	₩249.3B	₩252B	5.9%	7.6%	22.2%
2025	₩4.6T	₩368B	₩124B	8.0%	3.6%	21.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On an annual basis, revenue fell from KRW 4.4950 trillion in 2022 to KRW 4.0213 trillion in 2023, then recovered to KRW 4.2599 trillion in 2024 and KRW 4.6232 trillion in 2025.

Profitability improved more sharply: operating profit rose from KRW 152.0 billion in 2023 (3.8% margin) to KRW 249.3 billion in 2024 (5.9%) and KRW 368.0 billion in 2025 (8.0%).

Net profit attributable to owners, however, fell from KRW 252.0 billion in 2024 to KRW 124.0 billion in 2025, largely because the KRW 652.9 billion consolidated net profit of 2024 contained non-recurring items.

The company explained that 2024 included valuation gains on previously held COSRX shares and on a forward contract, alongside impairments related to Tata Harper, Rational and a Shanghai entity, and that excluding both non-recurring items consolidated net profit attributable to owners was around KRW 221.6 billion.

Quarterly, the fourth quarter of 2025 was the inflection point: revenue rose to KRW 1.2552 trillion but operating profit was only KRW 54.8 billion (about a 4.4% margin) and owners' net profit KRW 2.9 billion, and analysts pointed to KRW 53.6 billion of costs from a voluntary retirement program for traditional offline channels and corporate support functions, the first in about five years, with expected annual labor cost savings of roughly KRW 20 billion.

Since then, first-quarter 2026 revenue was KRW 1.2227 trillion with operating profit of KRW 137.8 billion (about 11.3%), and second-quarter revenue KRW 1.2543 trillion with operating profit of KRW 122.8 billion (about 9.8%).

Second-quarter revenue and operating profit rose 14.6% and 53.3% from KRW 1.0950 trillion and KRW 80.1 billion a year earlier, and the company said the improvement came from revenue expansion at home and abroad rather than cost cuts.

Cash flow and the balance sheet were solid, with 2025 operating cash flow of KRW 629.7 billion versus KRW 385.4 billion in 2024 and a debt-to-equity ratio of 21.2%; still, with KRW 3.7533 trillion of the KRW 7.2354 trillion consolidated equity held by non-controlling interests, consolidated margin gains do not translate fully into profit attributable to owners.

Industry analysis

End-market conditions look strong in export data. Korea's Ministry of Trade reported August 2026 cosmetics exports of USD 1.31 billion, up 52.1% year on year and a record for any August. Every month this year except February exceeded USD 1 billion, and year-on-year growth has now run positive for ten straight months.

Cumulative exports through August reached USD 9.64 billion, a 30.8% cumulative increase. The key structural change is geographic diversification.

NH Investment & Securities noted that August exports to Greater China fell 6% while exports excluding Greater China surged 73%, and that the top seven European countries now account for 14% of exports, close to Greater China's share. Amorepacific Group carries both the benefit and the burden of this shift.

IBK Securities assessed that Greater China has shrunk to 10.6% of overseas revenue, that completed restructuring limits downside to earnings, and that Western revenue growth and derma brand momentum are encouraging.

At the same time, brokerages have been raising target prices across the value chain including ODMs, brand owners and distributors on the view that K-beauty has entered a structural turnaround, which also means more indie brands and ODM-backed entrants and therefore sharper share competition for large brand houses.

The trade minister flagged uncertainty from tighter US and EU trade rules, a common variable for cosmetics exporters.

Outlook

Management's stated direction is framed as strategic tasks under a mid- to long-term vision.

Under its "Create New Beauty" vision the group is pursuing five tasks: focused cultivation of core global markets, stronger holistic beauty solutions, bio-technology-based anti-aging R&D, agile organizational change, and AI-first work transformation.

On business expansion, Amorepacific Holdings signed an investment agreement with aesthetic medical device maker HIGHER Corp. on July 27, 2026 and made a strategic investment.

The two plan to develop and commercialize skin boosters, cosmeceuticals and medical devices, create post-procedure after-care products, cooperate on clinic distribution, and jointly research raw materials. The investment amount and equity stake were not disclosed, so the financial contribution cannot yet be verified.

On second-half overseas momentum, NH Investment & Securities said COSRX and AESTURA under Amorepacific are maintaining solid sales and that current export conditions should show up clearly in brand owners' fourth-quarter results.

On estimates, KB Securities said on April 30, 2026 that it raised its target price for subsidiary Amorepacific from KRW 150,000 to KRW 180,000, projecting 2026 revenue of KRW 4.6410 trillion (+9.1%) and operating profit of KRW 464.6 billion (+38.3%), with operating margins of 10.0% in 2026 and 10.7% in 2027.

Separately, IBK Securities initiated coverage of Amorepacific on September 1, 2026 with a target price of KRW 200,000 (both figures refer to the listed subsidiary Amorepacific, not to Amorepacific Holdings).

On the other side, restructuring drag at the brand affiliates persists, so the key question is whether declining Greater China revenue and the channel-rationalization impact at Innisfree, Etude, Espoir and Amos Professional continue.

Valuation

PER

17.3×

PBR

0.6×

ROE

4.0%

EPS

₩1,522

BPS

₩46,156

Dividend per share

₩400

The first thing to note in valuation is that this is a holding company, not an operating company.

Profit from listed subsidiary Amorepacific flows into consolidated numbers, but more than half of consolidated equity belongs to non-controlling interests, so gains in consolidated operating profit translate into a smaller increase in profit attributable to owners.

On our own calculation basis the shares trade below net asset value per share, that is at a discount to book, in line with the discount structure typically applied to Korean holding companies with listed subsidiaries.

On dividends, the company announced a plan to pay out 50% to 75% of separate-basis net profit excluding one-off items for the three fiscal years 2023 through 2025, and the separate-basis payout ratio was 74.7% in 2023, 75.1% in 2024 and 74.7% in 2025, staying in the 70% range.

Since that policy window ended with fiscal 2025, whether a successor dividend policy is disclosed is the variable that will shape the dividend yield level.

For reference, IBK Securities assessed that as Amorepacific's operating margin settles in the 10% range, the rationale for its discount versus peers has weakened (a view on the subsidiary, not directly applicable to the holding company).

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Margin Step-Up Confirmed for Two Straight Quarters

The operating margin rose from 3.8% in 2023 to 5.9% in 2024 and 8.0% in 2025, then reached about 11.3% in the first quarter of 2026 and about 9.8% in the second. The company said Amorepacific achieved roughly a 10% operating margin domestically and a double-digit overseas margin for two consecutive quarters.

That suggests revenue recovery is now translating into fixed-cost leverage. If, as management stated, the second-quarter improvement came from revenue growth rather than cost cuts, the restructuring benefit has yet to appear in reported earnings.

Geographic Diversification into the West and Japan

Second-quarter 2026 overseas revenue rose 28% and operating profit 99%, with both online and offline channels growing in the Americas, EMEA, Japan and Asia-Pacific.

During Amazon Prime Day in the US and Europe, Laneige, COSRX, Illiyoon and Mise en Scene ranked highly and set record sales, while in Japan COSRX posted its best-ever result at Qoo10 Japan's Mega Wari event. Industry data point the same way: exports excluding Greater China surged 73% in August. A falling dependence on any single region is a favorable factor for managing earnings volatility.

Conservative Balance Sheet and a High Separate-Basis Payout Ratio

At the end of 2025 total liabilities were KRW 1.5340 trillion against total equity of KRW 7.2354 trillion, a debt-to-equity ratio of 21.2%. Operating cash flow rose from KRW 385.4 billion in 2024 to KRW 629.7 billion in 2025, restoring cash generation.

The holding company's separate-basis payout ratio stayed in the 70% range for three consecutive years, and reports note that most separate net profit comes from dividends from Amorepacific and unlisted affiliates, with dividends from three unlisted affiliates jumping this year. That points to capacity for both new investment and dividend funding.

Bear factors

Dilution of Profit Attributable to Owners

Consolidated net profit in 2025 was KRW 292.2 billion, but only KRW 124.0 billion was attributable to owners, less than half. Of KRW 7.2354 trillion in consolidated equity, non-controlling interests of KRW 3.7533 trillion exceed the owners' portion of KRW 3.4822 trillion.

In the second quarter of 2026, consolidated operating profit of KRW 122.8 billion translated into only KRW 41.8 billion of net profit attributable to owners. The limited pass-through of subsidiary improvement to holding-company shareholders is a structural constraint.

Weak Beauty Brand Affiliates and Shrinking Greater China

Innisfree, Etude, Espoir and Amos Professional saw second-quarter 2026 revenue and operating profit fall 13% and 51% respectively on channel rationalization. These affiliates have not yet booked restructuring cost savings, so the quarter carried the full burden of channel realignment.

Greater China revenue also declined on channel rationalization. Shrinking contribution from units outside Amorepacific narrows the breadth of group growth.

Intensifying Competition and Sector Flow Volatility

Emerging brands APR and Dalba Global posted second-quarter 2026 operating profit of KRW 190.6 billion (+134.5%) and KRW 47.2 billion (+61.6%) respectively. Analysts also point to continued scale-up of indie brands, forming a market structure less dependent on a few large corporate brands.

For a large brand house, that can mean rising marketing spend and channel fee competition. In addition, Korea Investment & Securities noted that with the market rising mainly in a few leading sectors, fund flows into cosmetics have recently been very unfavorable.

Risk factors

Trade and Regulation

While praising August export strength, Korea's trade minister flagged uncertainty from tighter US and EU trade rules. Industry commentary also points to rising trade barriers extending from the US and Canada to the UK and EU.

With Western markets now a larger share of revenue, changes in tariffs, certification and labeling rules can directly affect costs and shipment schedules. As geographic exposure diversifies, compliance costs may also arise in more varied forms.

Platform and Channel Dependence

Second-quarter overseas results leaned heavily on global platform events such as Amazon Prime Day in the US and Europe and Qoo10 Japan's Mega Wari. Analysts previously flagged that shifts in Sephora order timing limited growth in a particular quarter.

Platform event calendars and retailer ordering cycles can pull revenue forward or push it back, widening quarterly variance. This affects quarterly visibility more than the direction of earnings.

Governance and Shareholder Return Policy

With the founding family reported to hold 64.08% and minority shareholders 25.70%, questions have been raised about how dividend policy is decided.

Critics argued the emphasis lies on dividends flowing up to the holding company rather than returns to minority shareholders, while the company responded that dividend standards and payout ratios follow a pre-disclosed shareholder value plan and are decided by each company's own board.

Because the announced dividend policy period ended with fiscal 2025, the content and timing of any successor policy is something to watch.

What to watch next

Late October to early November 2026
Third-quarter 2026 results. The comparison base, third-quarter 2025, was revenue of KRW 1.1082 trillion and operating profit of KRW 104.3 billion (about a 9.4% margin), so the key points are whether near-double-digit margins hold for a third straight quarter and how overseas operating profit growth compares with the second quarter's 99%.
October 1, 2026 and the start of each following month
Monthly cosmetics export figures in the trade ministry's export-import data. With cumulative growth through August at 30.8%, tracking whether that pace holds and how the Greater China and Europe shares shift gives a read on end demand.
November 2026
Results from fourth-quarter global platform events such as China's Singles' Day and US Black Friday. NH Investment & Securities said current export conditions should show up in brand owners' fourth-quarter results, so whether event performance by COSRX, AESTURA and Laneige converts into actual revenue is the point to verify.
January to February 2027
Fourth-quarter and full-year 2026 results plus the year-end dividend resolution. Fourth-quarter 2025 was a low base with operating profit of only KRW 54.8 billion after voluntary retirement costs, and with the mid-term dividend policy covering fiscal 2023 to 2025 now expired, whether a successor policy is announced is also worth checking.
From the fourth quarter of 2026 onward
Whether the HIGHER Corp. partnership takes concrete shape. With plans covering skin boosters, cosmeceuticals, medical devices and clinic distribution, and with the investment size and stake undisclosed, the first product and commercialization timeline and when it appears in financials are the items to track.

Overall view

Amorepacific Holdings' recent results directly reflect the recovery at subsidiary Amorepacific.

The annual operating margin rose from 3.8% in 2023 to 8.0% in 2025, then reached about 11.3% in the first quarter of 2026 and about 9.8% in the second, with second-quarter revenue and operating profit up 14.6% and 53.3% year on year.

Growth came from domestic online and multi-brand shop channels plus the Americas, EMEA and Japan, while Greater China revenue fell on channel rationalization and Innisfree, Etude, Espoir and Amos Professional saw both revenue and operating profit decline.

The balance sheet is conservative, with a 21.2% debt-to-equity ratio and KRW 629.7 billion of operating cash flow in 2025, but with KRW 3.7533 trillion of the KRW 7.2354 trillion consolidated equity held by non-controlling interests, subsidiary gains pass through to owners only partially.

On the industry side, August cosmetics exports of USD 1.31 billion were up 52.1% year on year and a record for any August, indicating strong end demand, while indie brand expansion and tighter trade rules pull the other way.

On dividends, the separate-basis payout ratio held in the 70% range for three years, but that policy window closed with fiscal 2025, making the successor policy the key item.

In sum, an earnings recovery at the operating company sits alongside questions of profit attribution and shareholder returns inherent to a holding structure; this report is for information purposes and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.