1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited,Seoul Securities Branch View HSBC Global Investment Re

2、search at:https:/ The 21stedition of the EM Sentiment SurveyClick to viewBulls on the march Whats on our mind During 3Q 2025,Korea cosmetic exports were up 14%y-o-y which is a similar trend to in the previous quarter(sales up 15%y-o-y during 2Q25).By countries,exports to the US increased by 17%y-o-y

3、 whereas China remained weak(-18%y-o-y).We have witnessed a mixed set of results for cosmetic companies under our coverage;and we continue to believe APR growth momentum is intact.By companies,APR sales jumped by 121.7%,Cosmax and Kolmar Korea domestic sales increased by 10-17%y-o-y,Amorepacific sal

4、es were up 4.1%vs.LG H&H Beauty division sales declined by 26.5%on the back of aggressive channel restructuring in Korea.We believe successful indie brand growth rates are likely to outperform ODMs as the latter have a diversified customer mix some customers are successful vs.others not so much.Nove

5、mber Spotlight APR APR outperformed the market with its share price up 355%y-t-d(vs.KOSPI up 65%),driven mainly by strong earnings growth.We still believe its solid earnings trend will continue on the back of further channel and global expansion.Upcoming catalysts are:1)improved rankings resulting i

6、n market share gains in Amazon US;2)successful penetration into offline stores in the US(Ulta Beauty)and Japan;and 3)penetration into Europe Amazon channels;and 4)strong monthly cosmetic export data.For details,please see APR(278470 KS)3Q review another record high,06 November 2025.Our latest views(