Investment Across the Entire Value Chain of the Domestic Cosmetics Industry
“The Stock Prices of Domestic Cosmetics Companies Are Still Undervalued”,
, ‘[Seoul Economy] ‘,
, ‘Shinhan Asset Management announced the listing of the ‘SOL Cosmetics TOP3 Plus’ Exchange Traded Fund (ETF) on the 21st, which focuses on domestic cosmetics companies.’,
, ‘The SOL Cosmetics TOP3 Plus ETF invests across the entire value chain of domestic cosmetics companies, including ODM manufacturers, distributors, and brand-owning companies. As of today, it holds a 60% portfolio share in Siliconworks(257720), Cosmax(192820), and Amorepacific(090430). Additionally, it selects companies like Cosmecca Korea(241710) and Korea Kolmar(161890), as well as popular global brand companies like VT(018290) and APR(278470) for investment.’,
, ‘Shinhan Asset Management’s launch of a domestic stock-based ETF instead of an overseas stock-based one is due to the bright prospects for domestic cosmetics companies. Last year, the export value of domestic cosmetics surpassed 10 billion dollars (14.4 trillion won), reaching an all-time high. Although exports to China, the major sales market, have declined for three consecutive years, the record-high export figure suggests explosive demand from regions outside China, such as the US and Japan.’,
, ‘Kim Jeong-hyun, head of Shinhan Asset Management’s ETF Division, explained, “The high proportion of exports to China by domestic cosmetics companies in the past was a long-term factor for undervaluation. Recently, however, changes in the business structure and the diversification of export regions, focusing on the US and other global areas, have been notable. Despite the exceptional high growth of the domestic cosmetics industry, it is still considered undervalued in terms of stock valuation.”‘,
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