2026 Korea Conference Day 2: Key conference takeaways

Research evidence excerpt

2026 Korea Conference Day 2: Key conference takeaways

Price objective basis & risk

AmorePacific Corp (AMRPF)

Our PO of W180,000 is based on 26x 3Q26-2Q27E EPS, 1STD below 10 year historical

average, where historical forward multiple has been trading within the range of 18x to

40x. We believe 10-year average is fair as it takes into account operational trough

(2013/17/20) and peak (2015/16) periods, we expect valuation to improve from the low-

end of this historical range on sequential improvement in operation and profitability.

Upside risk to our PO is 1) successful rebranding of Sulwhasoo, 2) faster expansion in

US/Japan/EMEA, and 3) synergies between COSRX and Amorepacific in R&D and

distribution.

Downside risk to our PO is 1) disappointing expansion of Sulwhasoo in China, 2) delayed

recovery of cosmetics demand in China and the travel retail channel and 3) slower-than-

expected recovery of COSRX.

APR (XLTDF)

Our W480,000 PO is based on PEG of 1.0 in-line with industry peer average, implying

31x est 12M fwd P/E on mid-27 EPS (3Q26-2Q27E) . 31x is 1STD above the sector

peers' long-term (2010-2025) average of 26.5x. Given APR's outperformance in top line

growth and its accelerating share expansion in the global beauty market, we view an

above historical average multiple can be justified.

Risks: 1) reliance on a single brand, 2) exposure to B2B channel, and 3) excessive

competition among indie brands.

Hana Financial Group (HNFGF)

We derive our price objective of W156,000 using a target P/B multiple of 0.91x derived

by the Gordon Growth Model. Our assumptions include 9.9% sustainable RoE (from 24M

average RoE), 10% cost of equity, and 2% terminal growth. We then apply a 6% discount

to the sustainable RoE assumption, derived by regression analysis of historical RoE