[Edaily Reporter Kim Kyung-eun ] Cosmetics stocks are trading higher across the board in early trading on the 8th. This is interpreted as a rotation into neglected sectors with solid earnings, as leading sectors such as semiconductors take a breather.

According to MP Doctor, as of 9:06 a.m. today, BEAUTYSKIN Co., Ltd.(406820)is trading at 2,170 won, up 411 won (23.37%) from the previous trading day. Manyo Factory Co., Ltd.(439090)is trading at 17,430 won, up 2,570 won (17.29%).

In addition, ORGANIC TEA COSMETICS HOLDINGS COMPANY LIMITED(900300)(14.42%), LEADERS COSMETICS CO.,LTD.(016100)(6.21%), CLIO Cosmetics Co., Ltd(237880)(5.70%), SUNJIN BEAUTY SCIENCE CO., LTD.(086710)(4.15%), and ITSHANBUL(226320)(3.92%) are all on the rise.

This is interpreted as a rotation in investment, as investor sentiment toward previous market leaders has cooled amid last night’s decline in U.S. semiconductor stocks and renewed concerns over geopolitical tensions in the Middle East. Although cosmetics stocks continue to see strong export performance driven by the global K-Beauty boom, the sector has been considered one of the sectors left behind during the recent bull market.

According to the Ministry of Food and Drug Safety, cosmetics exports in the first half of this year reached $7 billion (approximately 10.84 trillion won), a 27.3% increase from the same period last year. This marks the highest first-half performance on record. Cosmetics exports in the second quarter totaled $3.9 billion, a 25.8% increase from the first quarter ($3.1 billion).

Han Yu-jeong, an analyst at HANWHA INVESTMENT & SECURITIES, said, “The fact that South Korean HANKOOKCOSMETICS exports are moving away from a structure dependent on specific countries or events is likely to lead to a reduction in seasonal fluctuations in the second half of the year.” She added, “The ‘HANKOOKCOSMETICS’ category itself is structurally expanding across global online and offline channels, so the export growth trend is expected to continue in the second half of the year.”