April 20, 2024

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[THE INVESTOR] LG Household and Health Care’s higher-priced cosmetics are generating strong sales in China, said Eugene Investment and Securities on June 19, maintaining a “buy” recommendation and 1.7 million won (US$1,537) target price. 

Chinese customers tend to buy expensive cosmetics brands that are above their income level, and their trading up signifies that the more expensive cosmetics are attractive. Sales of the Korean beauty heavyweight’s premium range, including The History of Whoo and Sum, in China leapt 89 percent in the first quarter from a year ago, and its ultra expensive Losec Summa line is gaining popularity, said analyst Lee Seon-hwa.

Consumer sentiment in China is improving with growing demand for luxury goods, and investors should pay attention to LG H&H’s potential to expand, she said. 

By Hwang You-mee (glamazon@heraldcorp.com)