KOSPICosmetics278470

Apr

₩367,000▲ 0.27%2026-10-02 close

Market Cap

₩13.7T

Turnover

₩66.4B

Volume

180,000 shares

Shares out.

37.4M

PER

34.1×

PBR

22.8×

EPS

₩11,551

Dividend Yield

1.29%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩5,090 per share · Prices as of the 2026-10-02 close

Report overview

Channel Expansion Drives Hypergrowth; Sustaining the Pace Is the Question

Record quarterly revenue driven by offline retail expansion in North America and Europe now faces the test of a much higher base, plus tariff and logistics cost variables.

1
Consolidated revenue grew from KRW 397.7bn in 2022 to KRW 1,527.3bn in 2025, and the second quarter of 2026 set a quarterly record with KRW 767.5bn revenue and KRW 190.6bn operating profit.
2
Overseas sales made up 92% of the second quarter of 2026, with North America and Europe combined rising from 40% to 68% of revenue in one year.
3
After Ulta Beauty, Target and Walmart, nationwide Costco sales in the U.S. are slated for September 2026, shifting the mix from online-led toward offline.
4
The company raised its full-year revenue target from KRW 2.1tn set early in the year to KRW 3tn, with an operating margin guidance band of 24-26%.
5
Declining domestic sales, supply bottlenecks in the device segment, the 15% U.S. reciprocal tariff and higher air freight costs sit on the other side of the ledger.

Business structure

APR is a beauty-tech company selling both cosmetics and home beauty devices; it operates brands including Medicube and Nerdy across beauty, device and healthcare solutions, listed on the KOSPI in 2024, and runs a device technology subsidiary (APR Device Center).

Revenue rests on two pillars, cosmetics/beauty and beauty devices: company data reported by TheBell in March 2026 put 2025 cosmetics/beauty revenue at KRW 1,077.1bn and beauty devices at KRW 407.0bn.

In the second quarter of 2026, cosmetics/beauty rose 185.5% year on year to KRW 648.3bn, devices grew 24% to KRW 111.9bn, and other businesses fell 30.7% to KRW 73.6bn as non-core lines were trimmed.

Brand concentration is high: the company said combined 2025 revenue from Medicube cosmetics and AGE-R devices topped KRW 1.4tn, with cosmetics more than tripling year on year to exceed KRW 1tn and devices passing KRW 400bn.

On products, high-efficacy skincare such as the Zero Pore Pad, Collagen Night Wrapping Mask and PDRN Pink Peptide Ampoule led sales, and the PDRN range passed 50 million cumulative units sold at home and abroad as of February 2026, roughly 20 months after its June 2024 launch.

In devices, cumulative Medicube AGE-R unit sales passed 6 million as of January 2026, with overseas accounting for over 60% of the cumulative total, and the lineup spans EMS, RF, HIFU and electroporation technologies designed for combined use with Medicube skincare.

Distribution builds awareness on Amazon and TikTok Shop before expanding offline: supply to all roughly 1,400 Ulta Beauty stores began in August 2025, followed by more than 1,500 Target stores in April 2026 and about 3,000 Walmart stores in June, while in Europe it entered around 450 Sephora stores across 17 countries including France, Germany, Italy and Spain in March.

The company says it has internalized R&D, its own production facilities and logistics centers to build a function-segmented lineup.

Domestically, one tally showed APR's divisional revenue at KRW 760.2bn in the second quarter of 2026 versus KRW 818.4bn for LG Household & Health Care's beauty division, narrowing the gap to KRW 58.2bn.

Earnings trend

Quarterly revenue · Operating profit

₩327.7B₩84.6B25Q2₩385.9B₩96.1B25Q3₩547.6B₩130.3B25Q4₩593.4B₩152.3B26Q1₩767.5B₩190.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩397.7B₩39.2B2022₩523.8B₩104.2B2023₩722.8B₩122.7B2024₩1.5T₩365.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩327.7B	₩84.6B	25.8%
2025Q3	₩385.9B	₩96.1B	24.9%
2025Q4	₩547.6B	₩130.3B	23.8%
2026Q1	₩593.4B	₩152.3B	25.7%
2026Q2	₩767.5B	₩190.6B	24.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩397.7B	₩39.2B	₩30B	9.9%	29.9%	83.6%
2023	₩523.8B	₩104.2B	₩81.5B	19.9%	41.4%	45.9%
2024	₩722.8B	₩122.7B	₩107.6B	17.0%	33.3%	74.7%
2025	₩1.5T	₩365.5B	₩289.7B	23.9%	65.0%	73.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

On confirmed figures, consolidated revenue moved from KRW 397.7bn in 2022 to KRW 523.8bn in 2023, KRW 722.8bn in 2024 and KRW 1,527.3bn in 2025, while operating profit rose from KRW 39.2bn to KRW 104.2bn, KRW 122.7bn and KRW 365.5bn over the same span.

The operating margin jumped from 9.9% in 2022 to 19.9% in 2023, eased to 17.0% in 2024, then recovered to 23.9% in 2025, as volume growth and a shifting overseas channel mix shaped the margin path.

Net profit attributable to owners grew from KRW 30.0bn in 2022 to KRW 289.7bn in 2025, and 2025 operating cash flow of KRW 341.0bn equaled about 93% of that year's operating profit, indicating relatively smooth cash conversion.

Quarterly revenue rose for five straight quarters: KRW 327.7bn in the second quarter of 2025 (operating profit KRW 84.6bn), KRW 385.9bn in the third (KRW 96.1bn), KRW 547.6bn in the fourth (KRW 130.3bn), KRW 593.4bn in the first quarter of 2026 (KRW 152.3bn) and KRW 767.5bn in the second (KRW 190.6bn).

Quarterly operating margins ran 25.8%, 24.9%, 23.8%, 25.7% and 24.8%, holding within a 24-26% band even as the top line more than doubled.

On the slight sequential margin dip in the second quarter of 2026, Eugene Investment & Securities noted that despite roughly KRW 13bn of U.S. tariff refunds, an earlier Amazon Prime Day schedule increased air shipments and a shift from sea to air freight in Europe added about KRW 10bn in logistics costs, with Coachella event and influencer marketing spending also booked.

The source of growth shifted clearly by region: overseas revenue rose 178% year on year in the second quarter of 2026 to 92% of the total, with North America at KRW 376.3bn (+264.6%), Europe at KRW 145.1bn (+380.3%) and Asia at KRW 121.1bn (+14.5%), while Korea fell 14.5% to KRW 63.3bn.

On the balance sheet, the debt-to-equity ratio rose from 45.9% in 2023 to 74.7% in 2024 and settled at 73.1% in 2025, while equity expanded from KRW 100.3bn in 2022 to KRW 445.8bn in 2025.

For the first half, one tally put revenue at KRW 1,360.9bn and operating profit at KRW 342.8bn, up 129.3% and 146.2% year on year, with an operating margin of 25.2% versus 23.4% a year earlier, about 1.8 percentage points higher.

Industry analysis

End demand remains in expansion. Per MFDS data, Korean cosmetics exports reached USD 7.0bn in the first half of 2026, up 27.3% year on year and a half-year record, after rising from USD 4.05bn in the first half of 2022.

The U.S. took USD 1.45bn, or 20.7% of the total, growing 41.5% and ranking first for a second consecutive year, and Ministry of Trade data showed August 2026 cosmetics exports of USD 1.31bn, up 52.1% and a record for any August. Diversification continues: for August 1-25, exports were USD 230mn to the U.S.

(+58.0%), USD 130mn to the EU (+106.6%) and USD 120mn to China (+5.3%), with the EU posting the fastest growth. On the other side sit trade costs.

After the U.S. signed an order suspending de minimis treatment, reciprocal tariffs also apply to cross-border e-commerce cosmetics shipments, with the reciprocal rate for cosmetics set at 15%.

Trade rules published in the Federal Register in December 2025 laid out phased reductions for items such as semiconductors and auto parts but none for cosmetics and food, leading to the reading that pricing should assume the 15% burden persists through 2026.

Channel structure is shifting from online virality toward large offline retail, and industry reports indicate brands are expanding into local mass retailers and weighing moving some production into the U.S. to reduce tariff exposure.

Competitive intensity is also rising: in August 2026, 19 K-beauty brands curated by Olive Young entered more than 500 Sephora stores in the U.S. APR's relative position therefore hinges on how quickly online-proven sell-through converts into purchase orders from large retailers.

Outlook

Company targets were raised sharply after first-half results. APR lifted its outlook from an initial KRW 2.1tn revenue target to more than KRW 3tn and refined operating margin guidance from about 25% to a 24-26% band.

At the second-quarter results briefing, Vice President Shin Jae-ha said U.S. market revenue is expected to reach roughly KRW 1.3tn this year.

Offline channels are the key second-half variable: CNBC reported on August 30 local time that the Medicube Zero Pore Pad 2.0 will be sold at Costco stores across the U.S., and the September start of Costco sales plus momentum at existing mass retailers were flagged as decisive for whether the U.S. revenue target is met.

In Europe, first-half revenue rose 363% year on year, filling 76% of the initial full-year European target in six months, with sales split evenly between online and offline after sequential online launches from Amazon UK into France, Germany, Italy and Spain.

New growth axes include a plan to launch a domestic aesthetic medical device as early as end-2026 and expand it globally over the medium term and completion in 2027 of a roughly 13,200 square meter third APR Factory in Pyeongtaek to begin producing PDRN- and PN-based skin booster ingredients.

Broker views mix caution on the base effect with emphasis on expansion speed: Eugene Investment & Securities estimated third-quarter revenue of KRW 774.4bn and operating profit of KRW 188.0bn, up 100.6% and 95.6% year on year, and expected air freight pressure to ease somewhat as safety stock is built.

Han Yu-jung of Hanwha Investment & Securities assessed that hit SKUs and operating methods proven in the U.S. are transferring quickly to Europe, which remains in an early expansion phase centered on its top five countries.

On shareholder returns, the policy of returning at least 25% of consolidated adjusted net profit via cash dividends or share buybacks and cancellations for 2024-2026 remains in place, and in March 2026 the company disclosed its first corporate value-up plan since listing.

Valuation

PER

34.1×

PBR

22.8×

ROE

81.8%

EPS

₩11,551

BPS

₩17,310

Dividend per share

₩5,090

When profits set records every quarter, the earnings-based multiple falls quickly even at an unchanged share price, and conversely turns into a burden fast if growth decelerates - APR sits at the point of maximum sensitivity to that mechanic.

Equity grew from KRW 100.3bn in 2022 to KRW 445.8bn in 2025, but profit growth has been faster still, so the shares trade at a substantial premium to book value.

For comparison, CNBC reported that as of late August APR's market capitalization stood at roughly twice that of Amorepacific and more than three times that of LG Household & Health Care.

The multiple ultimately rests on whether the raised guidance of KRW 3tn revenue and a 24-26% operating margin is delivered, and whether offline channel expansion including Costco extends into 2027.

Returns run alongside growth investment: cumulative shareholder returns since listing, combining cash dividends with buybacks and cancellations, have been tallied at about KRW 400bn.

As for directional views in the market, right after the August 2026 results five houses including Heungkuk Securities, Shinyoung Securities, Hanwha Investment & Securities, Eugene Investment & Securities and Daol Investment & Securities raised their target prices, with Heungkuk lifting its target from KRW 360,000 to KRW 500,000.

Hanwha Investment & Securities said in a July 2026 report that it maintained a Buy rating and a target price of KRW 500,000.

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 2026-08-23

Bull factors

U.S. Big-Four Retail Access Nearing Completion

Within about a year of entering U.S. offline retail, APR reached roughly 7,000 doors across Ulta Beauty, Walmart and Target, securing three of the four major U.S. beauty channels with only drugstores remaining.

The company explained that offline stores require volume secured in advance based on per-store shelf space and expected sell-through, which makes initial and follow-on orders larger.

At Ulta Beauty, monthly sell-through rose about 30% within three months of entry and demand triggered special reorders, confirming that initial shelf volume converts into replenishment orders.

Order-based revenue is understood to carry lower selling and administrative cost burdens than online, which can support margin retention.

Europe Emerging as a Second Growth Axis

European revenue in the second quarter of 2026 rose 380.3% year on year to KRW 145.1bn and began to be disclosed as a separate region. Europe moved fast enough to fill 76% of the initial full-year target within six months.

Lee Hae-ni of Eugene Investment & Securities said online marketing in Europe created a virtuous cycle that also lifted business-to-business revenue.

Because the model transplants SKUs and operating methods already proven in the U.S., the efficiency of early spending on new-country expansion is being managed in a relatively contained way.

Margins and Cash Flow Held Through Hypergrowth

Quarterly operating margins stayed within a 24-26% band across five quarters, from 25.8% in the second quarter of 2025 to 24.8% in the second quarter of 2026, while revenue expanded from KRW 327.7bn to KRW 767.5bn.

Operating cash flow of KRW 341.0bn in 2025 was not far from operating profit of KRW 365.5bn, suggesting working capital pressure was contained during the growth phase.

One tally noted that although total liabilities rose 39.3% on expanded overseas operations in the first half, current assets grew more than 60% in six months and the debt-to-equity ratio fell from 73.1% to 70.1%.

While that financial headroom persists, the company retains room to pursue channel expansion alongside ingredient and facility investment.

Bear factors

Base Effects and Shrinking Domestic Sales

With second-quarter 2026 revenue at KRW 767.5bn, subsequent quarters will be compared against a far higher bar. A Hanwha Investment & Securities analyst noted that the high second-quarter base could bring short-term growth-rate pressure into focus in the third quarter.

In the same quarter, Korean revenue fell 14.5% year on year to KRW 63.3bn, diverging from strong overseas growth. When most growth is concentrated in a few overseas markets, a demand slowdown in any one region carries proportionally greater weight for company-wide growth.

Tariffs and Freight as Standing Margin Pressure

The U.S. reciprocal tariff rate applied to cosmetics is 15%, and with de minimis abolished, even small direct shipments face duties or flat fees.

In the second quarter of 2026, despite tariff refunds, logistics costs were described as rising about KRW 10bn on more air freight and a European mode shift - refunds are not repeatable and freight rates can spike again on geopolitical variables. Passing costs through via price increases could also collide with large retailers' pricing policies.

Cosmetics Concentration and Device Slowdown

Device revenue in the second quarter of 2026 rose only 24% year on year to KRW 111.9bn, and commentary noted that the home beauty device segment, which stalled on supply bottlenecks in the quarter, saw its weakness offset by overwhelming cosmetics sales.

With cosmetics and beauty accounting for most of company revenue, the popularity cycle of specific bestsellers such as the Zero Pore Pad and the PDRN line becomes a core driver of earnings volatility.

Since the model relies on combined device-and-skincare routines to generate repeat purchases, a prolonged device slowdown could feed through to the repeat-purchase base with a lag.

Risk factors

Trade and Regulation

Reciprocal tariffs rest on executive orders and have been flagged as subject to short-notice change depending on politics, and no phased reduction schedule was specified for cosmetics.

The Minister of Trade also said uncertainty is elevated as protectionism strengthens, citing U.S. tariff policy and EU tariff-rate quotas. If rates or customs procedures shift again, a structure heavily weighted to U.S. revenue would have to readjust both cost base and pricing at once.

Channel Concentration and Inventory

One estimate held that if Walmart and Costco entries are completed, global offline points of sale could expand to 5,000-6,000, more than three times the current level. More doors lift initial order revenue, but without sell-through it returns as smaller reorders and inventory adjustment.

Observers also flagged that aggressive distribution expansion can itself be a risk. The greater the weight of a few large retailers, the more supply pricing and shelf terms shape reported results.

Competition and Brand Longevity

In August 2026, 19 K-beauty brands curated by Olive Young entered more than 500 U.S. Sephora stores, part of a rising number of brands moving into U.S. offline retail.

CEO Kim Byung-hoon assessed that where K-beauty's appeal once rested on novelty, it is now evolving into a domain of trust and verification - which can also be read as the entry barrier shifting from awareness to quality and regulatory capability.

Commentary has warned that if trade policy tightens further or brand dilution turns into quality controversy, the first-half records could stand as a peak.

What to watch next

September 2026
Time to verify whether the nationwide U.S. Costco rollout reported by CNBC actually proceeds and at what initial order size. It provides the first read on whether the company's roughly KRW 1.3tn full-year U.S. revenue figure is achievable.
October to early November 2026
At the third-quarter preliminary results (disclosed in early November a year earlier), watch whether revenue growth holds up and the operating margin stays within the 24-26% band. Eugene Investment & Securities had estimated third-quarter revenue of KRW 774.4bn and operating profit of KRW 188.0bn while expecting air freight pressure to ease.
Fourth quarter of 2026
A window to check peak-season Black Friday and year-end sales alongside progress toward guidance of over KRW 3tn revenue and a 24-26% operating margin. The number of top-ranked SKUs on European Amazon and offline B2B order trends will determine whether regional diversification persists.
Late 2026 to early 2027
Watch the timing and certification progress of the domestic aesthetic medical device launch signaled for as early as end-2026. Since the three-year 2024-2026 shareholder return policy also concludes, the criteria and scale of the next policy warrant attention.
2027
Whether the third APR Factory in Pyeongtaek is completed and PDRN- and PN-based skin booster ingredient production begins in earnest on schedule is the checkpoint for ingredient internalization and cost structure. Capacity additions should be assessed together with any easing of device and cosmetics supply bottlenecks.

Overall view

The past four years saw APR step up in both scale and profit - revenue rose from KRW 397.7bn in 2022 to KRW 1,527.3bn in 2025, operating profit from KRW 39.2bn to KRW 365.5bn, and the second quarter of 2026 set quarterly records of KRW 767.5bn revenue and KRW 190.6bn operating profit.

The character of that growth is clearly overseas channel expansion: with overseas at 92% of second-quarter 2026 revenue, North America grew 264.6% and Europe 380.3% while Korea fell 14.5%.

The bullish case rests on securing three of the four major U.S. beauty channels plus the September Costco entry adding order-based revenue, with operating margins holding in the 24-26% band.

The bearish case rests on the higher base, a device segment growing only 24%, the 15% U.S. reciprocal tariff and freight volatility, and the growing crowd of competing brands entering U.S. offline retail.

Since the company raised targets to over KRW 3tn revenue and a 24-26% operating margin, the verification sequence runs from initial Costco orders to third-quarter growth and margins, the fourth-quarter peak season, and then the medical device and Pyeongtaek third-factory timelines.

Dependence on a single cosmetics segment and concentration in a few large retailers act as leverage while growth holds and as volatility when it fades. 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.