Korean cosmetics shares rise as China reopens borders

Shares in South Korean cosmetics brands are gaining momentum after brokerage houses lifted their target prices on expectations that China’s border reopening would boost sales from Chinese visitors.

Ten brokerage companies in South Korea have increased their target prices for domestic cosmetics firms over the past week. Last month, only four securities firms lifted their target prices for those companies.

Shinhan Securities on Wednesday raised its target price for Amorepacific Co., the country’s top cosmetics brand, to 180,000 won ($144) from 150,000 won.

The stock climbed 2.86% to close at 144,000 won on Wednesday, leading gains in other cosmetics stocks listed on the Korean stock market.

Samsung Securities bumped up its target price for Cosmax Inc., an original design manufacturer, by 54% to 100,000 won.

The number of Chinese visitors to South Korea dwindled by 95.2% in November of last year, compared with three years earlier, or the pre-pandemic period

Hanwha Investment & Securities analyst Han Yoo-jung said that an increase in the number of Chinese travelers will drive a rebound in South Korea’s cosmetics sector.  

The share price of CLIO ended up 3.22% at 17,650 won, with LG H&H up 3.36% on Wednesday.

Write to Se-Yeong Kim at seyeong2022@hankyung.com
Yeonhee Kim edited this article.