[Special Stock] Cosmetics Stocks Rise Amid 'Record Highest Exports in Q1' Breeze

Leading Stock AmorePacific Hits 52-Week High for 2 Consecutive Days
Cosmetics Q1 Export Performance Reaches All-Time High
China Dependence ↓ Rapid Export Growth to US, Japan, and Others

The cosmetics stocks, which had long been neglected, are now beaming. Including Amorepacific, which has once again broken its 52-week high, the sector is showing strength from the start of trading on the 29th. This is interpreted as being influenced by improved business conditions, such as record-breaking export performance in the first quarter.

[Image source=Yonhap News]

As of 9:37 AM on the 29th, Amorepacific is trading at 154,100 KRW, up 2.32% (3,500 KRW) from the previous close. Following the closing price of 150,600 KRW on the 26th, which surpassed the previous 52-week high of 145,500 KRW recorded in November last year, it has marked a 52-week high for two consecutive trading days. The highest price since 2023, 155,800 KRW (February 2023), is also within reach. Amorepacific is the leading stock in the cosmetics sector.

Not only Amorepacific but other cosmetics-related stocks are also generally strong. APR, which had plummeted below its IPO price of 250,000 KRW since listing, is trading up 8.22% at 270,000 KRW. Pharmaresearch (8.59%), Bbia (5.50%), Zero to Seven (6.54%), DYD (5.73%), and Silicon2 (6.17%) are all showing gains exceeding 5%. LG Household & Health Care, the second-largest cosmetics company by market capitalization after Amorepacific, is up 2.04% at 400,000 KRW.

Cosmetics stocks surged last August when group tours by Chinese tourists were allowed, but the trend was sluggish until March this year. However, the sector is gaining attention again as cosmetics exports in the first quarter reached a record high of 2.3 billion USD, a 21.7% increase compared to the same period last year. Notably, exports to the United States rose 58.7% year-on-year to 378 million USD. Thanks to this, the previously very high dependence on China is also decreasing. From the 1st to the 10th of this month, China accounted for the largest share of Korean cosmetics exports at 22%, with the United States closely following at 21%. Other non-China regions such as Japan, Vietnam, and Hong Kong also recorded growth rates around 50%.