Domestic cosmetics stocks are experiencing a surge in response to expectations of growth in overseas markets. As demand for K-beauty expands, particularly in North America and Europe, positive earnings forecasts from analysts are boosting investor sentiment.
As of 1:50 PM on June 29, Amorepacific shares have risen by 14,700 won (15.15%) to 111,700 won. Korean Kolmar is up 8,800 won (9.70%) at 99,500 won, while A.P.R. has increased by 17,000 won (4.68%) to 379,500 won.
Analysts predict that the growing recognition of K-beauty in North America and the diversification of overseas channels will lead to improved earnings in the second quarter.
Hana Financial Investment estimates that Amorepacific's consolidated operating profit for the second quarter will reach 107.3 billion won, a 46% increase compared to the same period last year. They project that sales in North America and the Europe, Middle East, and Africa (EMEA) region will grow by over 20% and 40%, respectively, offsetting sluggish performance in China. Additionally, five products, including Laneige, COSRX, and Illiyoon, ranked among the top 100 beauty items during Amazon's Prime Day in June, indicating strengthened competitiveness for overseas brands.
Shinhan Investment Corp. has raised its target price for Korean Kolmar from 123,000 won to 130,000 won while maintaining a 'buy' rating. Analyst Park Hyun-jin noted, "The strong demand for skincare exports centered on Korean corporations is enhancing profit leverage. With new clients expected to come in for the second U.S. factory in the second half of the year, gradual performance improvements are anticipated."
* This article has been translated by AI.
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