Amorepacific Holdings: Improving Margins and Low P/B, With a Wide Gap Between Model Estimate and Share Price

Thesis

The data supports a picture of recovering operations. Revenue grew 5.9% in 2024 and 8.5% in 2025, and the operating margin rose from 3.8% in 2023 to 8.7% on a trailing basis. The balance sheet is conservative, with liabilities at 21.0% of equity and cash above borrowings.

What the data does not support is strong shareholder returns on equity. ROE is 4.0%, and net margin is only 2.9%, well below the operating margin. The shares trade at 0.6x book value, which is consistent with low returns on equity. The price is up 4.8% over 3 months but down 3.1% over 1 year and 2.5% over 1 month. Investor flow, foreign ownership and short balance data are not available, so we cannot comment on positioning.

Business overview

Amorepacific Holdings is a KOSPI-listed company in the cosmetics sector, founded in 1959 and listed in 1973. It has 79,458,180 listed shares and a market capitalization of about ₩2.00T. The co-CEOs are listed as 서경배 and 이상목. Revenue peaked at ₩5.33T in 2021, fell to ₩4.02T in 2023, and recovered to ₩4.62T in 2025. Peers in the data are much larger by market value, such as APR at ₩13.11T and Amorepacific (090430) at ₩7.73T.

Financial analysis

All figures come from filed financial statements (DART), consolidated where available.

Trailing revenue to H1 2026 was ₩4.84T, operating income ₩419.6B and net income ₩138.3B, giving margins of 8.7% and 2.9%. For 2025, revenue was ₩4.62T, operating income ₩368.0B (8.0% margin) and net income ₩124.0B. In 2024, net income of ₩252.0B was roughly equal to operating income of ₩249.3B, so it was higher than the 2025 level.

ROE was 7.6% in 2024, 3.6% in 2025 and 4.0% on a trailing basis. Cash is ₩614.0B against borrowings of ₩230.7B. Trailing free cash flow is ₩490.7B, which is large relative to the ₩2.00T market cap.

Valuation

Current multiples are a P/E of 14.5, P/B of 0.6, P/S of 0.4 and a dividend yield of 5.8%. EV/EBITDA is not available. The enterprise value is ₩1.62T. At year-end 2025, P/E was 17.2 and P/B 0.6, so P/B is unchanged and P/E is lower. Earlier year-end multiples are not available.

Among the peers, P/E ranges from 17.0 to 30.3 and P/B from 0.7 to 20.2 (LG H&H has no P/E). Amorepacific Holdings is below all of them on both measures.

The DCF model gives a base estimate of ₩95,981 per share, with a bear case of ₩41,614 and a bull case of ₩232,043, using a 4.7% rate, based on trailing data to H1 2026. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. Even the bear case is above the ₩25,150 price, and the very wide range shows how sensitive the result is to assumptions.

Catalysts

• The half-year report for June 2026 was filed on 2026-08-14 and showed trailing operating income of ₩419.6B.
• Weekly filings of changes in the largest shareholder's holdings and insider shareholding reports through 2026-09-30 show ongoing insider activity, though the data does not give the size or direction.
• A treasury share disposal result report was filed on 2026-08-03, which relates to the company's own shares.
• A dividend yield of 5.8% could draw attention if payouts are maintained, though the dividend history is not in the data.
• The shares are 30.0% below the 52-week high of ₩35,950 and 26.1% above the low of ₩19,950, so the trend in the next results will matter.

Risks

• Net margin of 2.9% and ROE of 4.0% are low, so the gap between operating and net profit could limit returns to shareholders.
• Revenue is still below the 2021 level of ₩5.33T, so the recovery is incomplete.
• The model range from ₩41,614 to ₩232,043 is extremely wide, so the estimate is highly sensitive to assumptions.
• Net income has been volatile, ranging from ₩62.2B in 2022 to ₩252.0B in 2024, which makes earnings harder to anticipate.
• Investor flows, foreign ownership, short interest and news headlines are not available, leaving gaps in the picture of market sentiment.

Closing view

The data shows a company whose operating profit and revenue have recovered, with a strong cash position, low leverage and valuation multiples below the peers shown. Against that, returns on equity and net margins are modest, earnings have been uneven, and the DCF estimate rests on assumptions that produce a very wide range. The low P/B may reflect those weak returns rather than an obvious mispricing. Missing flow and sentiment data limit the view, so this report describes the evidence without making a recommendation.

Model estimate of fair value

Bear

₩41,614

+78%

Base

₩95,981

+310%

Bull

₩232,043

+892%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 4.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Change in largest shareholder's holdingsSep 30, 2026
• Insider shareholding reportSep 30, 2026
• Change in largest shareholder's holdingsSep 23, 2026
• Change in largest shareholder's holdingsSep 16, 2026
• Insider shareholding reportSep 16, 2026
• Change in largest shareholder's holdingsSep 9, 2026
• Insider shareholding reportSep 9, 2026
• Change in largest shareholder's holdingsSep 2, 2026
• Insider shareholding reportSep 2, 2026
• 대규모기업집단현황공시[분기별공시(대표회사용)]Aug 28, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• 자기주식처분결과보고서Aug 3, 2026
• Daily prices up to 2026-10-12
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 13, 2026InitiationStart of coverage (300 largest)Amorepacific Holdings: Improving Margins and Low P/B, With a Wide Gap Between Model Estimate and Share Price