Cosmetics stocks are falling sharply despite the positive news as the mandatory outdoor mask wear will be lifted from next week. The obligation to wear an indoor mask still remains, and it is difficult to expect a recovery in overseas sales this year.
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On the morning of the 23rd, silver is trading at 110,000 won, down 6.38%. It was pushed back to 108,500 won during the day, setting a new 52-week low. Other cosmetics stocks, such as (-6.86%), (-2.57%) and (-5.93%), are also showing signs of weakness.
On the morning of the same day, the government announced a policy to completely lift the obligation to wear outdoor masks from the 26th. As a result, the obligation to wear a mask at outdoor gatherings, performances, and sports events, where wearing a mask was mandatory, will be lifted. However, the duty to wear a mask indoors will remain for the time being.
Analysts analyzed that this was the result of a large number of investors selling as the rising material fell in a situation in which the wearing of outdoor masks was already expected. In addition, it is estimated that most cosmetic stocks’ sales are expected to decline this year, making them less attractive for investment. According to Hyundai Motor Securities
The combined operating profit of seven major companies this year, including , Amorepacific, Cosmax, Kolmar Korea, and , is expected to grow negatively by nearly 20% compared to 2020, when the COVID-19 crisis began.
The sluggish domestic economy in China, the largest export destination for major companies, is also cited as a factor in the share price decline. Although the Chinese government has recently launched an economic stimulus package, experts predicted that the cosmetic industry would not benefit from the COVID-19 containment policy and economic stimulus package.
Jeong Hye-jin, a researcher at Hyundai Motor Securities, said, “In terms of short-term earnings, the third quarter is the off-season for the cosmetics brand industry.
Park Shin-ae, a researcher at KB Securities, said, “The Chinese cosmetics market continues to be sluggish in the third quarter due to the Chinese government’s passive economic stimulus policy. said.
By Bae Tae-woong, staff reporter [email protected]