There is an analysis suggesting that attention should be given to aesthetic-related stocks in the domestic market in the first half of this year. This is due to the expectation that aesthetics will grow with a focus on exports despite the sluggish economy.
On the 2nd, Ha Tae-gi from the Research Institute noted, “The prevailing view is that the Korean economy will likely fall into a phase of sluggishness due to the decline in major industrial competitiveness coupled with political issues.”
Accordingly, while industries based on domestic consumption are expected to face slowed growth, the toxin and filler sectors are not, according to Ha from the Research Institute. He explained, “(This area) has an export ratio of over 60 to 70%,” adding that “the strong dollar has a favorable impact on performance due to the high export ratio.”
However, there is a possibility that domestic sales of toxins and fillers could decrease due to political instability affecting medical tourism in the first half of this year. Nevertheless, Ha from the Research Institute forecasted, “Due to the high export ratio, it is possible to achieve high growth while overcoming the slowdown from domestic sluggishness.”
Major corporations in the toxin, filler, and aesthetic medical device sectors are expected to continue to achieve growth of 15 to 20% this year. Ha from the Research Institute stated, “With sustained high growth in exports and stable growth maintained domestically, it is possible to generate relatively high growth compared to other sectors.”
In the context of a sluggish domestic economy, these sectors are likely to garner relative interest in terms of growth. Ha from the Research Institute projected, “In this quarter's earnings season, the aesthetic sector is likely to receive relative attention, which could realize excess returns.”
Ha from the Research Institute expressed expectations for long-term growth prospects as well. He mentioned, “Looking at recent trends in the Korean stock market, it is not just the stocks of companies with good domestic performance that rise,” adding that “there is a lack of belief that even if short-term growth is achieved in domestic markets, it will lead to long-term growth amidst slow growth in the Korean economy.”
He emphasized, “For the stock price of these corporations to rise significantly, they must maintain stable growth domestically while having realizable growth visions abroad,” stating that “from this perspective, the filler, toxin, and aesthetic medical industries are promising.”
Although competition is intensifying in the domestic market for these products, officials agree that there is still low market penetration and growth potential when looking to the global market. Ha from the Research Institute remarked, “The global competitiveness of domestic filler, toxin, and aesthetic medical device products is being recognized, and there is still significant growth potential in the export market.”
Lastly, Ha from the Research Institute commented, “In addition to improving skin wrinkles, products aimed at enhancing skin troubles and activating cells will also see significant growth,” evaluating that “the long-term growth vision for the aesthetic industry is clear.”