 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, September 25 – Global investment banks and sovereign funds are ramping up investments in Korea’s beauty sector, underscoring the steady growth of global K-beauty demand and the rising influence of Korean cultural content in boosting consumer recognition worldwide.
According to a filing with the Financial Supervisory Service, Morgan Stanley & Co. International plc disclosed a 5.03% stake in APR (278470) as of September 24. Morgan Stanley has steadily raised its stake since mid-September, alternating between buying and selling shares while increasing its net position.
Analysts view the move as driven by strong earnings momentum. APR’s flagship skincare brand Medicube has posted triple-digit sales growth in markets such as the U.S. and Japan, with expectations that annual revenue could surpass KRW 1 trillion under a single brand. Foreign ownership in APR has also been on the rise.
Although APR’s share price has stabilized following a sharp rally earlier this year, optimism about growth remains high. Expansion into new categories and retail channels in the U.S., as well as the launch of online retail operations in Europe, are seen as significant growth drivers. “Medicube already has six products in Amazon’s top 100 beauty rankings, and sales during this year’s Amazon Prime Day matched last year’s Black Friday,” said Hyun-Jin Park, analyst at Shinhan Investment & Securities. “Third-quarter earnings expectations are therefore being revised upward.”
Brokerages have raised their targets, with Hanwha Investment & Securities and Daol Investment & Securities both setting KRW 300,000. The average target price now stands at KRW 270,526, implying more than 20% upside compared to APR’s September 25 closing price of KRW 223,500.
Meanwhile, foreign investors are also expanding stakes in other K-beauty leaders. Singapore’s sovereign wealth fund GIC disclosed a 5.005% stake in Cosmax (192820) on September 23, following consecutive purchases earlier this month. This makes GIC the third-largest shareholder after holding company Cosmax BTI (27.23%) and the National Pension Service (13.29%).
Cosmax’s shares had weakened following a soft second quarter, but analysts see the correction as a buying opportunity. “Cosmax’s standalone business continues to grow alongside K-beauty’s penetration into global markets,” said Kwon-Hoon Hyung, analyst at SK Securities. “Penetration rates in the U.S. and Europe remain low, leaving ample room for growth. Combined with strong momentum in Southeast Asia and plans to enter Europe’s ODM market, we expect Cosmax’s earnings trajectory to remain positive.”
The latest investments by Morgan Stanley and GIC highlight a broader wave of foreign institutional interest in K-beauty, reflecting confidence in its global growth potential.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
