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 Cosmetic names under our coverage are up by 81%y-t-d (vs KOSPI up 70%),led by a strong performance from APR Our preferences are indie brands,ODMs,and legacy brands in this order on the growth outlook Maintain

3、 Buy on APR,ODMs,and Amorepacific;Hold on LG H&H;adjust TPs post 3Q results 3Q 2025 review In 3Q 2025,cosmetic exports were up 14%y-o-y,similar to the trend in the previous quarter(sales up 15%y-o-y during 2Q25).By country,exports to the US rose by 17%y-o-y,whereas exports to China remained weak(-18

4、%y-o-y).Company results were mixed,with APR showing that its growth momentum is intact.By company,APR sales jumped 121.7%,Cosmax and Kolmar Korea domestic sales increased by 10-17%y-o-y,and Amorepacific sales were up 4.1%;LG H&H Beauty division sales declined by 26.5%on the back of aggressive channe

5、l restructuring in Korea.We believe successful indie brand growth rate is likely to outperform ODMs as the latter have a more diversified customer mix.Preferences are:indie brands ODMs legacy brands For the 4Q growth outlook,we forecast 98%sales growth for APR,5-9%for Cosmax and Kolmar domestic divi

6、sions,and 1.6%for Amorepacific,vs a decline in LG H&H Beauty division sales of 20%y-o-y.We adjust our estimates to reflect 3Q results.We continue to use 2026 as the base year in our SOTP valuation models and make no changes to our ratings.We make no changes to APR(Buy,TP KRW340k).For Amorepacific(Bu