Beauty Stocks Rise Amid Mask Mandate and Easing Expectations

Medical Laser Device Manufacturer Lutronic ↑
Classys and J.Cys Medical Also on the Rise

Implant-Related Stocks Also Trending Upward

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Beauty stocks are on the rise amid discussions about the transition to an endemic phase of COVID-19. As mask-wearing mandates are expected to be relaxed, demand for beauty and plastic surgery procedures is anticipated to increase.

According to the Korea Exchange on the 11th, Lutronic, a manufacturer of medical laser devices, closed at 28,700 KRW, up 0.53% from the previous trading day. This marks a 24.51% increase compared to early last month, and on the 6th of this month, it recorded a 52-week high of 29,950 KRW. Around 9:30 AM on the same day, Lutronic was trading at 29,450 KRW, up 2.61%. Additionally, beauty medical device manufacturers Classys and JC’s Medical also showed sharp gains. Compared to early last month, Classys and JC’s Medical rose by 23.73% and 18.75%, respectively.

Beauty stocks are rising on growing expectations of mask mandate relaxations. The government is expected to announce adjustments to social distancing measures and a ‘Post-Omicron Response System’ within this week. There are forecasts that if current quarantine guidelines are further eased, regulations might be lifted to allow mask removal outdoors. Earlier, the Presidential Transition Committee reportedly considered abolishing the outdoor mask mandate while maintaining it indoors. On the 8th, Jung Eun-kyung, Director of the Korea Disease Control and Prevention Agency, said regarding the removal of outdoor mask mandates, "We aim for this summer," adding, "It seems necessary to maintain masks indoors for the time being."

Park Sung-guk, a researcher at Kyobo Securities, explained, "Dermatology and plastic surgery clinics are using the timing of reopening and mask removal as a marketing tool. Because of this advertising approach, clinics need to purchase new beauty-related equipment, which is why beauty stocks are currently performing well." He added, "Since the US and Europe removed masks earlier than us, export performance is also rising. Although beauty stocks have generally increased, it is still difficult to say the entire industry is overvalued, so I believe now is an appropriate time to invest."

Meanwhile, implant-related stocks are also rising on expectations of mask mandate relaxation. Dentium closed at 77,200 KRW, up 7.07% from the previous trading day, marking a 24.12% increase compared to early last month. Vatech recorded 42,900 KRW, up 0.35%, rising 17.28% since early last month.