The Rebound of Stagnant Beauty Medical Stocks... Growth Potential as a Positive Factor

Strong Export Performance in March Raises Earnings Expectations
"Rebound Starting Late March... Skin Beauty Treatment Industry"

Beauty medical-related stocks have recently recorded superior returns compared to the domestic stock market. This is interpreted as being influenced by expectations for first-quarter earnings amid strong exports.

According to the financial investment industry on the 30th, Classys closed at 37,850 KRW, up 1,100 KRW (2.99%) from the previous trading day. This is a 7.22% increase compared to 35,300 KRW at the end of last month. During the same period, Wontec (5.89%), Hironic (3.76%), and JC’s Medical (16.83%) also rose. This performance surpasses the KOSDAQ, which fell 3.95% during the same period.

This upward trend is interpreted as reflecting expectations for first-quarter earnings. According to FnGuide, securities firms forecast Classys’ first-quarter sales and operating profit at 225.7 billion KRW and 114.6 billion KRW, respectively, representing increases of 25.30% and 27.83% compared to the same period last year.

During the same period, Wontec is also expected to achieve sales and operating profit of 160.8 billion KRW and 65.0 billion KRW, up 39.10% and 41.22%, respectively. Additionally, JC’s Medical is expected to record sales of 176.7 billion KRW and operating profit of 52.9 billion KRW, increases of 23.51% and 45.67% year-on-year, respectively, indicating that most beauty medical device companies are projected to post strong results.

Jeong Hee-ryeong, a researcher at Shinhan Investment Corp., said, “The beauty medical device sector rebounded starting at the end of March,” adding, “The approval of Violl’s ‘SilfirmX’ in China triggered a recovery in sector investment sentiment.” He continued, “Overall, companies recorded record-high export-import data in March, fueling expectations for first-quarter earnings,” and added, “Through export-import data, growth in overseas-oriented equipment, which is the core of sector growth, was confirmed.”

Kim Choong-hyun, a researcher at Mirae Asset Securities, also explained, “Beauty-related companies are rare in the domestic medical device industry in that many lead the global market,” and added, “Beauty-related companies that had been sluggish since the beginning of the year showed a rebound from the end of March.”

Along with this, the large growth potential of the beauty medical device market is also considered a positive factor. According to the International Society of Aesthetic Plastic Surgery (ISAPS), the global beauty procedure market size is expected to grow from 120 trillion KRW in 2021 to 330 trillion KRW by 2030, with an annual average growth rate of 15%.

Shin Min-su, a researcher at Kiwoom Securities, emphasized, “The number of global skin beauty procedures performed in 2022 was approximately 15 million, a 7.2% increase compared to the same period last year,” adding, “From an industry perspective, the skin beauty procedure industry is attractive and is showing remarkable indicators that greatly exceed the market.”