"Shares Surge 46% and Still Climbing... The Stock Favored by Analysts"

Kolmar Korea rises 46%, Cosmax up 33%

Cosmetics exports grown by 92% year-on-year this month

"Export growth to continue in the second half... industry appeal rising"

Driven by the global “K-beauty” phenomenon, cosmetics stocks are rising. With strong exports and robust financial performance, even securities firms are raising their target prices.

According to the Korea Exchange on August 17, stock prices for Kolmar Korea surged 46.32%, Cosmax rose 33.19%, and APR increased 23.13% this month, all showing strong upward momentum. On August 13, shares of Kolmar Korea reached 144,000 won, and Cosmax hit 262,000 won, both setting all-time highs. Dalba Global also rose to 283,000 won on August 12, marking its highest price of the year.

Cosmetics exchange-traded funds (ETFs) also posted significant gains. “SOL Cosmetics TOP3 Plus,” which holds a 20.48% weighting in Kolmar Korea, recorded the largest increase with a 26.82% gain. “TIGER Cosmetics,” weighted most heavily with Cosmax at 11.68%, rose 21.74% this month. “HANARO K-Beauty,” with a 15.97% allocation to APR, increased 17.65% over the same period.

The surge in exports and accompanying strong earnings are cited as factors driving the rise in stock prices. According to Samsung Securities, Korean cosmetics exports between August 1 and 10 reached $341 million (about 483.3 billion won), up 92.2% from the same period last year. Notably, exports to the United States and Canada soared by 457.7%, and those to Europe jumped 76.8%. Exports of basic skincare and sun-care products alone totaled $311 million, accounting for a staggering 91% share.

Accordingly, Kolmar Korea posted its highest-ever consolidated quarterly results in the second quarter, with revenue of 861.3 billion won and operating profit of 110.3 billion won. Woojung Kwon, an analyst at Kyobo Securities, said, “K-beauty’s penetration of the sun-care market in Europe is expanding rapidly, and sun-care products manufactured by Kolmar Korea have ranked among the top sellers at Olive Young in the US. Kolmar Korea’s share of the global sun-care manufacturing market is expected to rise from third place last year to second place this year, and could challenge for the top spot next year.”

Cosmax also posted record-breaking quarterly results in the second quarter, with consolidated revenue of 794.9 billion won and operating profit of 73.7 billion won. APR saw even more rapid growth, achieving its highest-ever quarterly numbers with revenue of 767.5 billion won and operating profit of 190.6 billion won, across both its cosmetics and beauty device segments.

Securities firms are also responding to these growth trends, raising their target prices in succession. Following its recent earnings release, Kolmar Korea had its target price raised to 150,000–200,000 won by 17 brokerages. LS Securities made a particularly bold move, increasing its target from 120,000 won to 200,000 won—a 66.67% jump. For Cosmax, 15 brokerages raised their targets by 17.50%, and for APR, five brokerages lifted their target prices by 6.58%.

Strong results are expected to continue in the second half of the year. Jiyoon Jung, an analyst at NH Investment & Securities, commented, “Korean cosmetics exports set an all-time record last month, with powerful momentum in Europe, and recoveries seen in China and Japan as well. With robust export growth continuing as expected through the second half, the industry’s attractiveness is likely to stand out even further.”

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