[Edaily Reporter Park Sun-Yeop ] HANKOOKCOSMETICS’s cosmetics exports have once again set a new all-time monthly record. As K-Beauty continues to penetrate markets—particularly in North America and Europe—at a faster-than-expected pace, analysts note that the recent stock price correction has widened the gap between industry performance and valuations.
Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated in a report on the 2nd, “HANKOOKCOSMETICS exports reached a record high of $1.1 billion in June,” adding, “Export momentum in North America and Europe was stronger than expected, and rankings on Amazon are also soaring.” Analyst Jeong maintained a “positive” outlook on the cosmetics sector.

According to NH INVESTMENT & SECURITIES, HANKOOKCOSMETICS’ total cosmetics exports last month reached $1.1054 billion, a 42% increase compared to the same month last year. Exports to the Greater China region (China and Hong Kong combined) rose by 32%, while exports to regions outside the Greater China region increased by 45%. This is interpreted as a sign that the industry is reducing its dependence on China while continuing to penetrate global markets.
By country, growth in Western markets was particularly notable. Exports to the United States rose 46% year-over-year, while those to Canada surged 94%. In Europe, strong growth continued, with Poland up 45%, the United Kingdom up 114%, the Netherlands up 289%, Spain up 89%, and Germany up 69%. With the exception of a few regions—such as Japan (-3%), Taiwan (-8%), and the United Arab Emirates (-4%)—exports increased in most major countries.
Researcher Jeong paid particular attention to the expansion of the European market. He projected that K-Beauty’s business-to-consumer (B2C) and business-to-business (B2B) sales in Europe would continue their steady upward trend, driven by the combined effects of the expansion of SILICON 2 Co.,Ltd.(257720)’s logistics center in Poland during the second quarter and the diversification of its customer base.
In contrast to the strong export performance, stock prices have been sluggish until recently. This is explained by the fact that demand has been concentrated on large-cap artificial intelligence (AI) stocks, causing a widening gap between stock prices and the actual business conditions and earnings of the cosmetics sector. However, analysts note that as the concentration on leading stocks has eased somewhat this week, a rebound is emerging, particularly among cosmetics companies with solid earnings.
Valuation pressures have also eased. According to NH INVESTMENT & SECURITIES, as of the previous day, the cosmetics sector’s 12-month forward price-to-earnings ratio (P/E) stood at 17.3x, significantly lower than the April high of 22.6x. Analyst Jeong explained, “There has been a significant divergence between stock prices and the sector’s business conditions and fundamentals,” adding, “As part of a rotation in investor sentiment, we are seeing a rebound in the stock prices of companies with solid earnings.”
Expectations for the earnings season are also growing. In the second quarter, K-Beauty brands accounted for 37 of the top 100 products in Amazon’s U.S. skincare category. Numerous domestic brands, including Medicube, Laneige, Anua, Cosrx, Dalba, and Estra, ranked among the top performers. Analyst Jeong noted that APR(278470)and AMOREPACIFIC CORPORATION(090430)showed strong momentum, and with Amazon’s promotional season coinciding in Europe, direct sales performance from Medicube and Dalba is expected to be promising.
He also viewed increasing exposure to cosmetics Original Design Manufacturer (ODM) companies as a sound strategy. The average projected P/E ratio for ODM companies this year stands at 12.8x, and given the order backlogs and growth trends of their separate legal entities, he believes their stock prices remain attractive.