South Korean cosmetics stocks surged, with K-beauty names including Cosmax gaining more than 55% at their monthly peak. Third-quarter earnings forecasts have also been revised higher in succession.
As semiconductor-related stocks lost momentum, funds flowed into cosmetics stocks in the South Korean market, with several names, led by Cosmax, posting sharp gains during the month. Cosmax in particular rose 55.26%, from KRW 185,500 to KRW 288,000.
Kolmar Korea rose approximately 53.72%, Silicon2 approximately 50.14% and APR approximately 30.77%, highlighting the strength of the K-beauty rally. By contrast, gains for Samsung Electronics and SK Hynix remained in the single digits.
Third-quarter earnings forecasts are being revised higher. APR's consolidated revenue is forecast at KRW 772.1 billion and operating profit at KRW 195.1 billion, representing a substantial increase year on year. Forecasts for Cosmax, Kolmar Korea and Silicon2 have also each been revised higher.
Expectations for an earnings recovery at major brand companies and the diversification of cosmetics exports are providing support, while investors including BNK Investment & Securities are raising their price targets. The market is also discussing the possibility that cosmetics stocks could become established as a new market-leading group.