J.P. Morgan | APR 3Q26 Preview: Strong Sales, Soft Profits — Earnings Growth Delayed but Not Derailed
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J.P. Morgan expects APR's 3Q26 operating profit to fall 10% quarter on quarter to KRW 171.0 billion, though up 78% year on year, as a stronger won and higher logistics costs from European expansion weigh on margins; gross margin is forecast to slip to 77%. Sales should rise 2% QoQ to KRW 781.0 billion (+102% YoY), helped by resilient US demand and continued European growth — European sales are projected up 25% QoQ, while North America eases 5% QoQ to KRW 358.0 billion (+119% YoY). The analysts cut 2026-2028 sales forecasts by 2-5% and operating profit forecasts by 8-13%, but keep an Overweight rating with a KRW 480,000 target price. In their view, demand has not deteriorated — US offline expansion and European penetration remain on track — and a seasonal profit recovery in 4Q26 should support growth through 2027-2028. APR's earnings growth has been delayed, the bank argues, not derailed.
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