[Featured Stock] AmorePacific Rises for 3 Consecutive Days... First Breakthrough of 110,000 Won This Month

Stock Prices Rise on Expectations of China-Originated Stimulus
3 Consecutive Trading Days Up, 15% Increase from Recent Low
China-Sensitive Stocks... 30% Sales Share in Greater China Region

Amorepacific has continued its rise for three consecutive trading days. The cosmetics industry is experiencing a positive trend as expectations grow that the Chinese government may introduce additional economic stimulus measures, attracting buying interest.

As of 10:32 AM on the 12th, Amorepacific is trading at 114,700 KRW, up 2.70% (3,000 KRW) from the previous trading day. This is the first time this month that Amorepacific’s stock price has surpassed the 110,000 KRW mark during intraday trading, with the last occurrence on November 26th of last month. Since hitting an intraday low of 99,500 KRW on the 9th, the stock has risen for three consecutive trading days, marking a 15.2% increase from the low point.

According to recent Chinese media reports, the Central Politburo of the Communist Party of China announced that it will shift to a more accommodative monetary policy stance for the first time in 14 years. In this context, there are also expectations that the Chinese government will hold the Central Economic Work Conference to announce specific economic stimulus measures.

China’s economic stimulus is considered a positive factor for the cosmetics industry, including Amorepacific. In particular, Amorepacific’s sales in the Greater China region account for about 30% of its total revenue. As a result, Amorepacific’s stock price has often moved in response to China’s economic conditions. When consumer spending is strong, the stock price rises, and when it weakens, the stock price tends to fall, showing a coupling effect.

Meanwhile, Amorepacific is pursuing long-term diversification of sales by region. At a management strategy briefing for analysts last month, the company announced plans to accelerate rebalancing by adjusting its business focus from China to the United States, Japan, Europe, and other markets. The Chinese subsidiary aims to improve profitability through fixed cost reduction and business model transformation.