[Weekend Money] Rising K-Beauty Stocks: "Focus on These Factors for Each Company"

K-Beauty Rebounds After Corrections, Shares Rise on Earnings Expectations

"Investors Should Beware of Profit-Taking After Earnings Releases"

Amid ongoing volatility in the stock market, the medical aesthetics and cosmetics sectors are expected to see continued rotational buying, and analysts say now is the time for investors to distinguish between leading and lagging companies based on their key growth drivers following second-quarter earnings releases this year.

On the 13th, most customers, who are foreigners, are shopping for cosmetics at a cosmetics shopping mall in Myeongdong, Seoul. Photo by Younghan Heo younghan@

On August 1, Samsung Securities released a report titled "Extreme Volatility: The Need to Distinguish True Leaders After Earnings Announcements," forecasting that growing market volatility and high earnings expectations will lead to rotational moves within the medical aesthetics and cosmetics sectors. The company explained that stocks with attractive valuations—which have become increasingly appealing due to the intense market fluctuation since June—are likely to see a rebound.

In particular, institutional and foreign investors have recently focused their buying on brand companies and original design manufacturers (ODMs) with lower valuation burdens compared to APR, which has not undergone a major correction in the first half of this year. From June 30 to July 30, LG Household & Health Care rose by 27.2%, Amorepacific by 26.8%, Cosmax by 20.0%, and Cosmecca Korea by 15.9%.

Given the current high market volatility, Samsung Securities cautioned that investors should be mindful of profit-taking sell-offs that may occur immediately after earnings announcements and highlighted key investment points for each company to watch in the second half of the year.

For APR, the main focus for the third quarter will be whether the company can continue its quarterly growth by expanding the popularity of online bestsellers following the results of this year’s Amazon Prime Day, as well as broadening its offline distribution network. In addition, APR is working to reduce its heavy reliance on the U.S. online channel by driving sales growth in Europe, and there is growing attention on the possibility of expanding into dermatology equipment in the fourth quarter this year.

DALBA Global aims to diversify its popular products, such as mists, sunscreens, and multibalms, and to secure loyal customers by increasing the number of offline stores in Japan, Europe, and North America. The company is also focusing attention on inorganic business expansion with synergistic potential, such as its recent acquisition of a 33.61% stake in Korean indie fragrance brand Quoca Skin for 9.6 billion won.

Jung Donghee, a researcher at Samsung Securities, commented, "For the three major domestic ODM companies—KOLMAR Korea, Cosmax, and Cosmecca Korea—it will be critical to see whether they can extend their momentum from the traditional peak season in the second quarter into the third quarter. Cosmax should focus on diversifying its clientele in the U.S. and China, while attention for KOLMAR Korea and Cosmecca Korea should be on expanding K-beauty market coverage in new regions."

This content was produced with the assistance of AI translation services.