J.P. Morgan South Korea FTM 6 Aug 26 APR; Coupang; Korea Insurance; Hyundai Department Store; Kakao Bank and More

Research evidence excerpt

Asia Pacific Equity Research

South Korea First to Market

06 August 2026

Top Stories

APR (Jihyun Cho/Tae Wook Kim) (278470 KS, OW)

Strong 2Q results lift visibility on global scale-up; raise PT to W560K

APR delivered robust operating profit of W191bn (+25%q/q and +125%y/y), 10%/7% above JPMe/Street estimates . The

outperformance was driven by stronger-than-expected revenue momentum, led by cosmetics and continued overseas scaling

in North America and Europe. On the other hand, profitability was resilient: GPM improved on a one-off tariff refund, while OPM

eased modestly owing to higher marketing, commissions, and air freight expenses. Reflecting the two consecutive earnings

beats and improved visibility on global scale-up, management upgraded 2026 guidance to W3trn revenue (vs. previously

W2.1trn) with a 24–26% OPM. We also view this quarter as a meaningful step-up in execution, reinforcing a more diversified

growth profile , driven by deeper bestseller penetration, faster new-category contribution, and continued channel expansion. In

accordance with the revised outlook, we raise our estimates by 5-8% across the projection period and roll over the base year to

Dec-27E, raising our price target to W560K. We reiterate OW.

Coupang (Stanley Yang) (CPNG, OW)

2Q slight margin miss, Mixed guidance, Await rapid recovery from 4Q

2Q26 consolidated revenue rose 10% YoY on a CC basis, coming in at the high end of guidance (9-10%) and in line with our

expectations. Adj. EBITDA margin was 1.8%, slightly below our estimate due to ongoing P.C. margin pressure (elevated

marketing cost and weaker volume-based savings). Despite strong underlying demand (P.C. user spend +16% YoY, excluding

the missing cohort), 3Q revenue/margin guidance was disappointing, likely driving negative Street revisions for 3Q/4Q (JPM

cuts adj. EBITDA by 35%/6%) and weighing on near-term sentiment. We recommend buying on weakness, supported by: 1)

limited downside risk to guidance with upside if WoW user returns improve, 2) a margin trough in 3Q followed by rapid recovery

from 4Q, and 3) improved visibility into 2027 earnings/margins under management’s mid-term framework. We reiterate OW and

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