South Korean cosmetics companies such as LG Household & Health Care and AmorePacific are reducing their reliance on the Chinese market and aggressively increasing their market share in the United States.According to statistics from the Korea Customs Service on April 15, the export amount of Korean c
The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.4Q23 OP falls short due to inventory adjustments at distributorsAmorepacific posted consolidated operating profit of KRW20.7bn (-64% YoY) on sales of KRW926bn (-15% YoY) for 4Q23, missing our estimate (KRW
The Korean beauty care industry is turning its eyes to the Japanese market. It is a strategy to try to rebound by targeting Japan as an alternative market as its performance weakened due to a decline in the market share of Korean cosmetics in China.LG Household and Health Care’s cumulative sales thr
After facing performance setbacks last year, Amorepacific is aiming for a rebound in the U.S. market this year.A report released by Kiwoom Securities on Jan. 5 forecasts that Amorepacific’s revenue for this year will be 4.2177 trillion won, with operating profits expected to be 406.1 billion won.In
K-beauty companies are gaining tremendous popularity in the Japanese market, surpassing beauty powerhouse France. Leveraging cost-effectiveness and product quality, these companies are showcasing their presence across both online and offline markets, offering a range of products from basic skincare
The author is an analyst for NH Investment & Securities. She can be reached at jiyoony@nhqv.com -- Ed.In 2023, the consumer goods portion of Korea’s exports surpassed that of capital goods for the first time in 25 years. While domestic consumption should weaken on higher interest expense burden in 2
Seven Korean companies, including LG Electronics, Lotte Chemical and Samsung Fire & Marine, have joined RE100 this year, bringing the total number of Korean companies to 34, according to the U.K.-based Climactic Group on Nov. 3.This means that Korea has the fourth-most number of companies after the
The author is an analyst for NH Investment & Securities. She can be reached at jiyoony@nhqv.com -- Ed.If excluding one-off labor costs, AmorePacific met 3Q23 consensus. Due to the slow recovery of Sulwhasoo in China, earnings growth at the firm is likely to remain flat in 4Q23. However, we see justi
While the global economy faces a downturn, domestic beauty industry leaders like Amorepacific and LG Household & Health Care are grappling with challenging times. In stark contrast, Kolmar is flourishing on its own. Amid the repercussions of the economic downturn, the consumer market has experienced
The author is an analyst for Shinhan Securities. He can be reached at hpark@shinhan.com -- Ed.Investment point 1: Domestic earnings driven by inbound touristsInbound visitors to Korea rose to 960,000 in July, reaching 66% of the 1.45mn level seen in July 2019 with triple-digit growth continuing ever
South Korean cosmetics have gained popularity not only in neighboring Japan and China but also in North America and Europe, soaring in global demand. Factors contributing to this surge include the relative affordability of these products, outstanding quality, the global popularity of K-pop, and enha
AmorePacific’s “AESTURA” is set to officially launch in the Japanese market on Sept. 1. The product line will be showcased at 12 branches of “Atocosme,” Japan’s largest beauty specialized platform and multi-brand shop. The A-SICA 365 lineup, making its debut in the Japanese market, is developed base
The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.2Q23 review: Booking of mostly one-off costs already knownAmorepacific posted 2Q23 consolidated sales of KRW945.4bn (flat YoY) and operating profit of KRW5.9bn (positive swing YoY). Sales came in line with
The market capitalization of conglomerate subsidiaries listed on the KOSPI has shown a sharp increase of approximately 350 trillion won (US$271.21 billion) compared to the beginning of the year. Particularly, 17 companies affiliated with Samsung Group recorded the largest increase, with their combin
The author is an analyst for NH Investment & Securities. She can be reached at jiyoony@nhqv.com -- Ed.AmorePacific’s 2Q23 OP missed expectations by a wide margin due to e-commerce inventory adjustments in China and increased global marketing expenses. From 2H23, Sulwhasoo should enjoy a recovery in
Amorepacific announced on July 19 that it has become the first Korean company to join the International Collaboration on Cosmetics Safety (ICCS).The ICCS, which was launched in February this year, is a global initiative comprising cosmetics manufacturers, industry associations, and animal protection
Between 2013 and 2015, during China’s economic boom, the business outlook in China was rosy for South Korean corporations. Exports to China increased, leading to an upsurge in investment. However, companies overly dependent on China have encountered significant difficulties barely a decade later.Ind
The author is an analyst for Shinhan Securities. She can be reached at hpark@shinhan.com -- Ed.We now expect Amorepacific to post consolidated operating profit of KRW50.3bn (positive swing YoY) on sales of KRW988.2bn (+5% YoY) for 2Q23, falling short of our previous forecasts by a wide margin. While
Propelled by the acceleration of the next generation of K-Beauty players, South Korea’s cosmetic exports have surpassed 10 trillion won for two consecutive years.According to the Ministry of Food and Drug Safety on July 6, domestic cosmetic companies’ exports last year were 10.2751 trillion won (US$
The Amorepacific Group has signed a memorandum of understanding (MOU) to strengthen its strategic partnership with global retail company A.S. Watson Group.Lee Sang-mok, CEO of the Amorepacific Group, and Malina Ngai, Asia & Europe CEO of A.S. Watson Group, met at the Amorepacific Group's headqua