August 14, 2014 13:33
Korea's top cosmetics company Amore Pacific has surpassed the W2 million mark per share to become the third most expensive issue on the Korea Composite Stock Index (US$1=W1,029).
The stock has doubled in value from W1 million at the end of 2013. This increased the total value of shares owned by Amore Pacific chairman Suh Kyung-bae from 2.7 trillion to W5.9 trillion.
Amore Pacific shares on Wednesday closed up 4.44 percent at W2.07 million, the third stock on the KOSPI to breach the W2 million level, along with Lotte Confectionery and Lotte Chilsung.
Analysts forecast it will soon overtake the other two.
The main causes are booming duty free sales and the success of its business in China. The company achieved consolidated sales of W996.7 billion and an operating profit of W151.1 billion in the second quarter of this year, up 21 and 69 percent on-year.
Cho Hyun-ah, an analyst at Shinhan Investment and Securities, said, "The proportion of Chinese sales rose from 21 percent in the first quarter to 26 percent in the second quarter."
Sales through Lotte Duty Free shops rose 2.3 times on-year in the April to June period thanks to a surge in Chinese tourists visiting Korea.
With the increased value, Suh is the third-biggest stockholder after Samsung chairman Lee Kun-hee and Hyundai Motor chairman Chung Mong-koo.
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