The stock price of AmorePacific once soared above the 3-million-won level on February 24, breaking the record of the most expensive stock in Korea. The cosmetic company's stock was closed at 2,973,000 won, up 3.3 percent (99,000 won) from the previous day. Accordingly its market capitalization has increased to 17,379.7 billion won. AmorePacific's stock price has increased 29 percent from 2.33 million early this year. This is more than 1.1 million won higher than the runner-up Lotte Confectionery (1,851,000 won).
Behind the company's fast rise there are solid financial results backing up the stratospheric price level. In particular, the first-quarter financial performance is expected to be at a record-high level.
Park Jong-dae, analyst with Hana Daetoo Securities, said, "Based on brand recognition it has gained in Korea and elsewhere, AmorePacific will be able to hit the best financial results in the first quarter. Especially the fact that it is gaining the market share in China is a positive fact for the stock."
"It is estimated the online sales for the company rose more than 100 percent last year. In China's online market, there is no need for health and sanitary licenses and the company can sell new products right away without lengthy approval process, which makes it a more attractive stock for investors," he said.
