The Surge in South Korean Cosmetics Stocks
South Korean cosmetics stocks have been experiencing a significant upward trend, driven by a notable increase in exports to Europe and the United States. This has led to substantial growth in sales and operating profits for companies in the sector. As the second quarter approaches—typically the peak season for cosmetics stocks—expectations for improved profitability are also on the rise. Leading securities firms have been increasing their target stock prices for top-performing companies in the industry.
Strong Performance Across the Industry
According to the Korea Exchange, the leading stock in the domestic cosmetics sector closed at 410,000 Korean won on April 21st. This represents a surge of 75.9% from its value of 233,000 Korean won at the start of the year. Similarly, Kolmar Korea saw its stock price rise from 65,400 Korean won to 86,300 Korean won, while d’Alba Global increased from 153,200 Korean won to 198,700 Korean won. Year-to-date returns for these companies reached 31.9% and 29.7%, respectively. Other companies such as Cosmax and Silicon Two also showed strong performance, with returns of 20.2% and 20.7%.
The positive movement in cosmetics stocks can be attributed to the strong export results in the first quarter. According to Shinhan Securities, combined sales of domestic cosmetics and household goods companies increased by 13.3% compared to the same period last year, with operating profits expected to have risen by 13.4%. Specifically, APR reported a 173.3% increase in operating profit compared to the previous year, followed by D’Alba Global (43.2%), Cosmax (17.3%), Kolmar Korea (15.7%), and Amorepacific (11.0%).
Export Growth Drives Market Optimism
A major factor behind the rise in cosmetics stock prices is the significant increase in exports to the United States and Europe. Park Hyun-jin, a research analyst at Shinhan Securities, noted that the growth rate of South Korean cosmetics exports has been particularly strong in these regions. Last month, cosmetics exports increased by 24% compared to the same period last year, and the first 10 days of this month also saw a 24% increase.
This trend is expected to continue into the second quarter. Park Jong-dae, a researcher at Meritz Securities, stated that first-quarter cosmetics exports to Europe increased by 53% compared to the same period last year, and there is a high probability that this momentum will carry over into the second quarter. He added that Europe could become the largest export region for South Korean cosmetics this year. With the growth rate of exports to the United States recovering by over 30% compared to the previous year, Europe’s rapid advancement is notable.
Park also highlighted the dynamic nature of K-beauty, where the largest export region changes annually. He mentioned that China was the top export region in 2024, the U.S. in 2025, and Europe in 2026. He concluded that the growth rate of cosmetics exports this year could exceed expectations.
Securities Firms Adjust Target Prices
Buoyed by the strong export growth and earnings expectations, securities firms are raising their target stock prices for key players in the cosmetics sector. Shinhan Securities increased the target price for APR from 350,000 Korean won to 500,000 Korean won. KB Securities raised the target price for Kolmar Korea to 115,000 Korean won, a 19.8% increase from the previous target. Meritz Securities also adjusted its target prices for d’Alba Global and Cosmax to 236,000 Korean won and 270,000 Korean won, respectively.
Jeong Ji-yoon, a researcher at NH Investment & Securities, noted that cosmetics export volumes set record highs in March and again in early April. He added that the first-quarter performance across the sector is expected to meet market expectations, and the strategy of increasing exposure ahead of the peak season in the second quarter remains valid.
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