Local brokerage firm Hyundai Securities has upped its price target for the cosmetics maker to 70,000 won (US$62.98) from 55,000 won while maintaining a buy rating on Aug. 2.

“TonyMoly’s operating profit in the second quarter rose 1,208 percent from a year earlier to 4 billion won, which exceeded analysts’ estimates of 1.9 billion won,” said Lee Dal-mi, an analyst at Hyundai Securities.

The analyst attributed the positive quarterly earnings to increased exports to the Europe which offset sluggish domestic sales.

“The firm’s export volume to European countries continues to be on an upward trend. It is expected to launch more stores in the region next year,” Lee said.

Currently, TonyMoly sells its beauty products at 825 stores of Sephora, a French cosmetics store chain, in 14 European nations.

TonyMoly’s shares gained 4.88 percent to 53,700 won in midday trading, outperforming the broader KOSPI’s 0.41 percent loss.

By Park Han-na (hnpark@heraldcorp.com)