[Featured Stock] Sehwa P&C Rises on Expectations of Boost in Chinese Cosmetics Business Following Hanhanryeong Lift

[Asia Economy Reporter Hyungsoo Park] Sehwa P&C is expanding its gains. The expectation that China's economic retaliation measure, the 'Hanhanryeong,' could be completely lifted appears to be influencing the stock price.

As of 12:20 PM on the 13th, Sehwa P&C is trading at 3,435 won, up 13.93% compared to the previous trading day.

The government is reportedly discussing a visit to Korea by Chinese President Xi Jinping. If President Xi visits, it is expected that the Korea-China relationship, which deteriorated due to the 2016 THAAD deployment decision, will improve.

As domestic cosmetics-related stocks surge collectively, expectations for improvement in Sehwa P&C's China business have also grown.

Sehwa P&C obtained cosmetic Moremo brand approval from the China Food and Drug Administration (CFDA) in 2017.

Minhee Lee, a researcher at IBK Investment & Securities, analyzed in a report last month, "The exclusive contract with China's Kona International, signed in early 2018, was extended into 2019," adding, "Export volumes are concentrated in the fourth quarter."

She also emphasized, "The company is seeking additional sales growth momentum in 2020 through export expansion," and "After entering the U.S. home shopping market this year, consumer response to the Water Treatment (Moremo's flagship product) has been positive, and next year, local offline expansion is also planned."