APR: Rapid Profit Growth and High Multiples, With Shares Under Pressure in News After Oct 12 Close

Thesis

The data supports a picture of fast growth: revenue rose 111.3% in 2025 to ₩1.5T, and trailing revenue is ₩2.3T. Trailing operating income is ₩417.0B and ROE is 89.0%.

The data also shows reasons for care. The trailing operating margin of 18.2% is below the 2025 margin of 23.9%. The valuation is high, with a P/E of 30.5 and a P/B of 20.3. Shares fell 5.4% over one month and 7.4% over three months to Oct 12, and are about 25.9% below the 52-week high of ₩475,000.

Headlines dated Oct 13 say shares fell sharply after brokerages flagged Q3 earnings likely to fall short of expectations and cited costs of European expansion. One headline quotes a view that fundamentals are not impaired. The price data here ends Oct 12, so the size of the move is not captured in the figures and reports in the headlines differ (11% to over 20%). Investor flow, foreign ownership and short balance data are not available.

Business overview

APR (에이피알) is a cosmetics company listed on KOSPI since Feb 27, 2024, and was founded on Oct 10, 2014. It has 37,430,655 listed shares and a market cap of about ₩13.2T at the Oct 12 close. Revenue grew from ₩259.1B in 2021 to ₩1.5T in 2025. Among the listed peers in the data, Amorepacific has a market cap of ₩7.7T, LG H&H ₩4.1T, Cosmax ₩3.4T, Kolmar Korea ₩3.1T and d'Alba Global ₩2.1T, so APR's market cap is larger than each of them.

Financial analysis

These figures come from filed financial statements (DART). Revenue grew from ₩259.1B in 2021 to ₩397.7B in 2022, ₩523.8B in 2023, ₩722.8B in 2024 and ₩1.5T in 2025. Growth was 53.5%, 31.7%, 38.0% and 111.3% in 2022 to 2025.

Operating income rose from ₩14.3B in 2021 to ₩365.5B in 2025, and net income to ₩289.7B. The operating margin was 9.9% in 2022, 19.9% in 2023, 17.0% in 2024 and 23.9% in 2025.

For the twelve months to H1 2026, revenue was ₩2.3T, operating income ₩417.0B (18.2% margin) and net income ₩432.2B (18.8% margin). Net income above operating income suggests non-operating gains, though the data does not give the source. ROE is 89.0%, liabilities to equity 70.1%, cash ₩94.5B and free cash flow ₩308.3B. Borrowings data is not available.

Valuation

At the Oct 12 close, APR trades at a P/E of 30.5, P/B of 20.3, P/S of 5.7 and EV/EBITDA of 30.6, with a dividend yield of 1.0%. Enterprise value is ₩13.1T. At the end of 2025, the P/E was 29.9 and the P/B 19.4, so current multiples are close to year-end levels. Earlier year-end multiples are not available. Peer P/E and P/B figures are not available in the data, so a comparison with similar companies on multiples cannot be made. Only market caps are given.

Catalysts

• Merger decision filings were made on Sep 9 and amended on Sep 16, and the details are not in the data provided.
• Brokerage commentary on Oct 13 about weaker-than-expected Q3 earnings points to the upcoming earnings release as a key event.
• The H1 2026 report was filed on Aug 14, after preliminary earnings on Aug 5, and showed trailing net income of ₩432.2B.
• Several investor relations events were held in July and August, including on Aug 27.
• A record date for shareholder registry closure was set on Sep 9 and a dividend-related record date decision was filed on Jul 16.

Risks

• Headlines dated Oct 13 report a sharp one-day price fall tied to profitability concerns, which shows high sensitivity to earnings expectations.
• The trailing operating margin of 18.2% is below the 2025 level of 23.9%, and headlines link this to costs of European expansion.
• A P/B of 20.3 and a P/E of 30.5 leave the valuation dependent on continued strong growth.
• Net income exceeds operating income in the trailing period, so part of the profit may not come from operations.
• Data on investor flows, foreign ownership, short balance and borrowings is not available, which limits the view of positioning and leverage.

Closing view

The filed numbers show a company that has grown quickly with high returns and strong free cash flow. Against that, margins have eased from 2025, the multiples are high, and news after the last price date reports a sharp reaction to profitability worries and lowered brokerage targets. The data does not show the size of the Oct 13 move or peer multiples, so the evidence is mixed: strong growth history alongside rising doubt about near-term earnings.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationAPR: Rapid Profit Growth and High Multiples, With Shares Under Pressure in News After Oct 12 Close