"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"

Thanks to the overseas “K-beauty” boom, shares of cosmetics companies have been rising. With robust export growth bolstering financial results, securities firms are also raising their target prices.

According to Korea Exchange on the 17th, shares of Kolmar Korea have surged 46.32% this month, while Cosmax rose 33.19% and APR gained 23.13%, showing clear upward momentum. On the 13th, Kolmar Korea reached KRW 144,000 and Cosmax hit KRW 262,000, both renewing their all-time highs. Dalba Global also climbed to a yearly peak of KRW 283,000 on the 12th.

Cosmetics exchange-traded funds (ETFs) have also performed strongly. “SOL Cosmetics TOP3 Plus,” which has a 20.48% weighting in Kolmar Korea, posted the highest growth with a 26.82% increase. “TIGER Cosmetics,” with Cosmax comprising the largest proportion at 11.68%, rose 21.74% this month. “HANARO K-Beauty,” which includes APR at 15.97%, advanced 17.65%.

The increase in exports and resulting strong financial results are seen as key drivers for the share price rally. According to Samsung Securities, from August 1 to 10, exports in the cosmetics sector reached USD 341 million (approximately KRW 483.3 billion), a 92.2% increase year-over-year. In particular, the U.S. and Canada saw explosive growth of 457.7%, while Europe recorded 76.8%. Basic skincare and sun care products combined accounted for exports of USD 311 million, representing a staggering 91% share.

As a result, Kolmar Korea achieved its highest-ever consolidated results in the second quarter, with sales of KRW 861.3 billion and operating profit of KRW 110.3 billion. Woojeong Kwon, a researcher at Kyobo Securities, stated, “K-beauty’s sun care penetration is expanding rapidly in Europe, and sun care products manufactured by Kolmar Korea have ranked among the top sellers at Olive Young in the United States. Kolmar Korea’s global share in sun care manufacturing is expected to rise from third place last year to second place this year, with a run at the top spot possible next year.”

Cosmax also posted record-high quarterly results with Q2 consolidated revenue of KRW 794.9 billion and operating profit of KRW 73.7 billion. APR achieved rapid growth by expanding from cosmetics into beauty devices, posting Q2 revenue of KRW 767.5 billion and operating profit of KRW 190.6 billion—both the highest for a quarter.

Securities firms are responding to this growth trend by successively raising their targets. Following Kolmar Korea’s recent results announcement, 17 brokerages raised their target share price to KRW 150,000–200,000. LS Securities increased its target price by a remarkable 66.67%, from KRW 120,000 previously to KRW 200,000. For Cosmax, 15 brokerages, and for APR, 5 brokerages, raised target prices by 17.50% and 6.58%, respectively.

Strong performance is expected to continue in the second half. Jiyoon Jung, a researcher at NH Investment & Securities, noted, “Last month, Korea’s cosmetics exports hit an all-time high, driven by powerful momentum in Europe, with demand in China and Japan also rebounding. As the strong export growth trend continues as expected for the second half, the sector’s appeal is likely to be highlighted.”

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